Purchase your First Home With Slow Credit
Posted on December 27, 2008
Filed Under Short Sale Florida |
It used to be that if you had less-than-perfect credit you had little chance of finding a mortgage lender willing to do business with you. But times have changed and thatâs good because in todayâs home mortgage and mortgage refinance market itâs common to find just as many applicants with good credit as there are applicants with whatâs now referred to as âslowâ credit.
What is slow credit?
Charge offs, collections, foreclosures, bankruptcies, and a history of late payments are the types of issues that can trigger the âslow creditâ alarm. Those who donât have any credit history at all â good or bad â also end up in this higher risk category.
Plenty of life circumstances can cause an individual to fall on hard financial times. Divorce, medical problems and illnesses, death of a primary bread winner, and loss of employment can strike any one at any time. Even coming of age is a problem because many young adults havenât had a chance to build up a significant credit history.
Mortgage lenders realize that times are tough for lots of otherwise good people and thatâs why theyâre willing to work with their applicants to find home mortgage and mortgage refinance solutions that work and more importantly, that are affordable.
What does this mean to you? Well, it means that even when such negative marks are part of your credit history, you can still obtain a home purchase or debt consolidation loan or refinance your existing mortgage. And thatâs great news!
Little or no down payment?
If youâre already having trouble making ends meet, you probably donât have much money left over to save for a down payment. But you know what? Even slow credit combined with a low loan to value ratio doesnât have to stand in the way of qualifying for the lowest mortgage rates. Youâre working hard and you deserve a break, and you deserve a new home, too. So nowâs the time to locate a Florida mortgage specialist with proven experience in the slow credit market.
Do you know if you have errors or omissions on your credit reports that make you appear to be a bigger credit risk than you truly are? An experienced mortgage broker will help you make the changes that will bring about the most favorable results when it comes to recalculating your credit score. Once your credit reports accurately reflect your credit history, your mortgage broker can then shop your mortgage or mortgage refinance application around to find the lenders willing to offer the most favorable terms.
If youâve got slow credit now, you should know that such a rating doesnât have to last forever. In fact, the sooner you start improving your credit history, the better. There are many steps you can take including paying all your bills on time, every single month, lowering your loan balances and closing a few of your accounts.
If youâre ready to turn your dreams of home ownership into reality or you want to refinance an existing mortgage then click here now!
http://www.flbestrate.com/
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4 Responses to “Purchase your First Home With Slow Credit”
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what is the best way to restore my credit fast? In Canada.?
My fiance and I are looking to purchase a home. However we have a high debt ratio, and some slow payments in the past. We tried to get a loan to consolidate our debt, but because of our low credit scores, we were denied the loan. We have a high interest car loan (18%), student loans, and credit cards, which is why we really want to consolidate our debt before buying a home.
I would put off buying the home for the moment but keep that as you goal for why………..you pay off your credits, and any other bills that you have. As soon as you accomplish this your rating will give you what you need for the loan you want. Also I would suggest to start a savings account so you can have a good downpayment when you purchase your new home. This will keep your mortage at a reasonable limit.
References :
1st - search the Internet for a Consumer Credit Counseling service. They'll work with your creditors to reduce your payments, and may even waive interest charges.
2nd - defer your student loans (if possible) to pay off your credit cards
3rd - PAY OFF THOSE CARDS! But don't cancel them. Your credit rating will move higher based on how much credit you have available to you that you have not used yet. Example, if you have a credit card with a $5,000 credit line, and you close it, you've just lost another chance to show a bank that you can handle credit responsibly.
4th - Sell your car, cash out, and get a used one.
Also, if you want to save money for a home, make a list of every single purchase you make, from a stick of gum to a new shirt. After a month of doing this, you'll really see where your money is going.
And, don't keep applying for new credit cards, unless you are sure you are going to get approved. Everytime you apply for credit, your credit report gets tagged that you have been applying excessively for credit. To a potential lender, this will appear that you are 'desperate' for cash, and cannot handle your finances.
All in all, it will take time for your credit report to build back up…patience.
References :
Okay, First of all, there is no magic quick fit. With that said, do not be tricked into any fix your credit plans. The last thing you need is to pay someone to fix your credit and it is a rip off. It took some time to get into this mess and it will take you just as long if not longer to get out. First step, sit down and make a budget. Get all bills caught up and paid on time. At first use as much extra money in your budget as you can to get those high interest loans paid down or off. Then start a savings program, you can start little at first, as you will still be focusing on paying off debt. If you can pay down the car below bluebook you may want to try to refinance and get a lower rate. Debt ratio and payment history are key to home loans. Take some time and work out a plan, after a year you could be ready.
References :
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