Are home buyers with less than perfect credit unable to buy today?

By
Mortgage and Lending with Jamie Russen - Greentree Mortgage NMLS ID #95705

Today's home buyers or potential home buyers should understand what is impacting their credit score. It is important to also know what is on your report. I would like to start a series of blogs that will high light a customer we are working with who currently has bad credit but that does not mean that in a relatively  short amount of time, can be approved to buy her first home in Sicklerville, New Jersey.

We were contacted by our customer off of the internet and she informed that she has some credit issues that she is aware of and that she has concerns that these credit items will keep her from purchasing a home in Sicklerville, New Jersey. She is currently renting in this area and has young children that she would like to keep in the same school district.

The first step I took with her was completing a mortgage application which includes pulling a new credit report for her. I was able to send her a copy of the report so she could review for accuracy. She currently has a score in the 530 range. Most lenders or real estate agents would shy away from a customer with a score in this range. We have a great working relationship with a local credit enhancement company that outlines what she will need to do in order to get her score up to an approval-able score. By following the outline she was given. in less than 6 months she will have the needed credit score.

Our potential home buyer has been eying up some local short sales in Sicklerville, New Jersey and there is no one I trust more in our local market when it comes to short sales than Cheryl Dare of Keller Williams Realty. I set up a meeting for our home buyer to come into my office and sit down with Cheryl Dare and myself. Here I was able to collect all of her income and asset documentation to make sure that she would be able to not only qualify for the short sales in Sicklerville, New Jersey that she liked but more importantly feel comfortable with where the monthly payments would be.

Cheryl Dare has extensive experience working with short sales from both the home buyers side and the sellers side. It is important to work a short sale specialist these days. Cheryl was able to explain the process and also set the proper expectations for our home buyer. Our buyer is also now set up to start receiving short sale homes in Sicklerville, New Jersey emailed to her as soon as they hit the market or there is a change in sales price.

She is receiving her first group of emails this weekend so I will continue to post with updates on our home buyer.

If you are on the fence about trying to get approved for a mortgage because of credit history, it is important to reach out and work with people that are willing to take the time with you to help you accomplish your goals.

Comments (4)

Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Jamie - I too will work with someone who may not be ready to buy now but maybe with a little time and work, they can be ready in the near future.  Not only is this a form of farming for the future but it establishes a relationship with the future borrower.  On another note, don't be surprised if in the meantime, that future borrower refers someone else to you too.  I speak from experience when I say that.  Have a great holiday weekend.  :)

Sep 03, 2011 06:45 AM
Jamie Russen
Jamie Russen - Greentree Mortgage - Voorhees, NJ
100% Financing Specialist

Donne - that's great! It is actually very rewarding when you are able to do that for some one. Now some times people will get the credit plan but the ones that do are very loyal customers and a great referral source. Thank you for reading my post and commenting! Best of luck

Sep 03, 2011 07:21 AM
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Jamie - Even though a buyer can't buy now doesn't mean they won't be able to do so in the future.

Sep 04, 2011 02:28 PM
Phil Hillerman
Crye-Leike Realtors® - Rogers, AR
Crye-Leike Realtors®

Good Morning Jamie,  While right now buyers are a good thing, buyers needing help to get ready for the home purchase are more the norm. We like to help them along that path until they are ready to buy.

Oct 14, 2011 12:49 AM