Buying A Home With Past Credit Problems
So very many buyers in the Tampa Bay, FL market have credit problems...you are absolutely not alone. We see this challenge continuing as so many more foreclosure cases are filed in Tampa bay this week. Here is a great article from Joan about how you can plan a positive move forwards, and soon this will be all a memory... begin with a positive step, or a positive thought TODAY, and let me know if I can help you in any way.
Buying a home can be both exciting & stressful but, for those with past credit problems, the process may also seem intimidating. The good news is that most lenders have adapted to the idea that many hopeful homebuyers simply need a second chance, which means that past credit problems no longer have to define your future.
Credit Belmishes
When life unexpectedly takes a turn for the worst, it's not always possible to come out without a few bumps and bruises. Every day, people are faced with late or missed credit card payments, mortgage foreclosures,bankruptcy, auto repossessions & even civil judgments that will affect their credit reports for years to come. Whether it's from a job loss, injury or just a simple case of temporary hardship, credit blemishes are often a part of life. The good news is that they no longer have to prevent you from becoming a homeowner.
Give Yourself A Little Credit
After experiencing a credit problem, most lenders will want to see an attempt to rebuild your credit through a steady payment history with a new account. This can be accomplished by applying for a credit card & maintaining a responsible use of the account. If you aren't approved for an unsecured card, you can always apply for a secured credit card. Either will rebuild your credit over time and will help to show lenders that your past credit problems are just that - in the past.
Clean Up Your Credit Report
Before applying for a home loan, make sure that you check your credit report from each of the three major credit reporting agencies. Every 12 months, consumers can request a free copy of their credit report.If anything is incorrect or found to be inaccurate, filing a dispute with the credit reporting agency can help to get the information corrected before speaking with a lender.
When you apply for a home loan, the lender will access your credit report for the purpose of determining your creditworthiness. In an effort to ensure that you have the best possible chance at being approved for the loan at the best possible interest rates, making sure that your credit report is accurate is a must.
Save Up For A Down Payment & Closing Costs
Some buyers often qualify for a mortgage with down payments as low as 3.5% , but those with past credit problems may be required to make a much greater down payment on their new home. A buyer who pays a much larger down payment shows a more vested interest in their home purchase in the eyes of the lender & thereby, may be less likely to default on a loan. If you have past credit problems, check with your lender about specific down payment requirements & start saving!
Creative Financing Options
If you've exhausted all of your conventional efforts and are still turning up empty, don't give up just yet. Alternative financing is sometimes an option that some buyers use to purchase a home. A real estate agent can provide you with details regarding a lease purchase or owner financing ,which may require no immediate bank qualifying, & a low down payment.
Joan Congilose, Broker/ Sales Associate RE/MAX Central Manalapan/ Marlboro & Beyond
" Exceeding Your Expectations "
Call me at (732) 972-1000 x 364
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