Warning: Credit Bureaus Don't Forgive or Forget Quickly!
Are you thinking of buying a house pretty soon? You need to check out this blog.
A good friend of mine, and an awesome loan officer wrote this.
Gene is good at what he does (mortgages) and would be happy to answer any questions you might have about the mortgage process.
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Warning: Credit Bureaus Don't Forgive or Forget Quickly!
Today, I am frustrated ...
And the scenario over which I am so frustrated has now popped-up a few times within a very short time.
What's the scenario?
Multiple new clients have contacted me for financing. Both purchase and/or refinancing assistance has been requested. Many of these clients have related that they have been contemplating taking action for a quite a while. Great! So what's frustrating about all of this?
A handful of these clients have made late payments on a car or missed credit cards payments recently. All while contemplating a home purchase or new financing! When I asked about the missing/late payments that showed on their credit report, each has made the same remark, "but I caught up on my payments!"
Aaaaaggghh!!
My message here today is this: Just because you "catch up" on late or missing payments ... or your billings no longer show you're in arrears ... it does not mean that no damage has been wreaked on your credit scores ... or your borrowing power has not become more limited. Because it does and it has!Late and missed payments show on your credit report, are reflected in your credit scores, and can limit your options in financing, well after you "catch up" on payments. I can't tell you how many times I warned my own kids about this ...It takes a long time to BUILD good credit ... but it can be DESTROYED unbelievably quickly ...
I liken it to a cut or a bruise on your body. The scar or discoloration of each lingers well after the actual damage and pain first associated with it is gone.
Credit Bureaus do not "forgive and forget" quickly. Potential Home Buyers (and those contemplating a Refinance) need to be aware of this fact ... be respectful of it, and conduct their finances accordingly. Especially if they are contemplating a home purchase or Refinance in the near future.
The forgetfulness of my clients ... their financial/credit "hiccups" ... will be costly for them in a myriad of ways. Time will most definitely be lost while we work on repairing their credit. (One may lose out on the home they hoped to buy because of the extra time element now involved in their transaction.) Other "costs" may trickle down because of that lost time. Remember that home prices are on the rise in most markets and Interest Rates have gone up and down too.
Please: If you're considering the purchase of a home ... or hoping to Refinance the mortgage you presently have soon or within the next year, use my clients as a warning and credit reminder for yourself.
Stay diligent regarding your monthly payments, the dates those payments are to be made, and your credit standing. You'll be glad you did ...
* Hoping to Buy or Refinance a home within New Lenox, Joliet, Will/DuPage County, or elsewhere in Chicagoland? Not sure what your credit scores are? Contact me today! I'll put my 36+ years of mortgage experience and expertise hard to work on your behalf.
I can be easily found at any of the following:Direct:
815.524.2280 Cell/Text:
708.921.6331
eFax:815.524.2281 Skype:
630.219.1316
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Gene Mundt
Regional Manager - Mortgage Lender
Personal NMLS #216987
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NMLS # 175656
Lender in IL
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