Today's market can throw alot of curve-balls at all of us in the Real-estate business, and for every problem there is a solution.
I know that most everyone in the mortgage business know plenty about credit and how it works, if your a Realtor it's good for you to know about credit as well. I have some info that was passed on to me about supplemental credit and how to document it the best way, so you can help a client get started with their dream of homeownership.
Typically if a client doesn't have enough trade-lines or any credit at all, then the banks usually work with supplemental credit, such as...
1. Electric bill
2. Car Insurance bill
3. Cellular phone bill
4. Home phone bill
5. Even your current rent Bill
You can document these accounts the old way like getting payment letters, you may even be able to track down cancelled checks, if your lucky and have enough patients. The improved way of doing this would be having someone tracking your supplemental credit and then giving you credit for it on paper, in credit report form.
There is a company called (-PRBC pay -rent- build- credit-) and they track recurring bill and loan payments including rent for the consumer or whomever. The client can self enroll themselves in this program and these reports that are generated look like real credit reports in credit report form, they are accepted by Fannie Mae and Freddie Mac, which are two that helped with the grant to start this company. This company has even made it a option to go back up to Thirty six months and verify good payment history from the past.
The bottom line is there are many way's to document credit and with good credit come better rates and all around costs, try and utilize a new option for all of our clients past, present, and future.
This site can be found at WWW.PRBC.COM it's worth looking at. By the way Cost of this is Free!!
I have no relationship or agreements with this company, i am passing on general info for our info.
Good day to everyone and good luck....
Thomas R. Weiss
Mortgage Consultant
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