Karen Church, your "Go To" gal at RE/MAX Integrity at www.eugenehomesgal.com discusses the question of "What if I have no Credit?
On occasion, a borrow will not have enough credit references to obtain the loan they wish to secure. If this is the case for you, start by opening small lines of credit that report to all three major CRA's, and make purchases that can be paid off easily. If you do not already have a checking or saving account, open one. Your bank or credit union may be able to provide you with a credit card account once you have established a history with them as a customer.
It is also wise to start saving money for the down payment on your home. The lender will look at your application more favorably when you are able to come to the table with a 20% down payment. Bear in mind, there are certain loan programs available that permit a percentage of gift money for down payment, which can come from a relative, or even the person selling the home.
This information is has been obtained through the Real Estate Lending Group. Be sure to contact me if you need further assistance.
Stay tuned for Part 8: Dealing with Credit Challenges
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