Will My Credit Let Me Buy a Home?
Many people wonder if they have sufficient credit to Buy a Home and if they can get a loan. There is a lot of bad information floating about. Worse yet sometime people talk to the wrong lender.
The California Association of Realtors (CAR) put out an info-graphic on Credit Myths that often keep people from Buying a Home:
Here is my advise if you are considering Buying a Home but are not sure if you can get a loan:
Talk to a lender. Not later when you think your credit is better or you have more money. Talk to the lender now! Even if you cannot buy now the lender is the best person to help you prepare a plan to buy a home. They take a picture of where you are at and give you a road map for getting where you want to be.
Ask Questions. Find out exactly what you need to do to get a home loan. If the Lender is not providing you with a good road map they are not a good lender. If you know what the issue is sometimes there is another lender than can help you around the issue.
Be sure you talk to the right lender. As a Realtor I know good lenders. Good lenders are like tools in a tool box. Some are good for one thing and some are good for another. Although there is a lot of regulations around lending the fact is some lenders can do things others cannot. There are different programs and different lenders have different overlays (rules they impose but not government rules).
Be persistent. I don't think you need to call the lender every day, but when you have a plan follow up periodically. If you lender knows you are serious and working on things they will make you a priority. Although I think it is important to find the right lender for your situation I also think loyalty is important. A lender that finds you loyal and persistent will work harder for you.
Tell the Truth. The lenders heavily document the file. Just tell them the ugly truth up front. It is easier to deal with that way. If you lie you will be caught. The truth is in this economy most of us have some ugly truth.
Document – Document – Document and then get some more documents. Lending is all about documentation. Don't argue just get it. Keep copies of it so you can send it again. Yes they will ask for stuff you just sent. Just send it again. Keep new documents as they come in (Pay stubs, bank statements and so forth).
Keep focused on your dreams and keep that dream alive. Agents hate it when our clients are out looking at homes without us, and we don't like to take the time to show homes until your loan is ready. But the reality is I know looking at homes helps keep that dream alive. Fine go to my search engine and look at homes on line. If you must go to open houses and such tell them you are working with someone already.
Be realistic about what you can afford and where you can afford.
A great place to check your credit score for free is CreditKarma.com.
It may seem like a lot of work, but we appreciate those things we work for. The Journey to home ownership start with these steps. It is not just a journey to home ownership but a journey to the financial security and financial future that home ownership can bring.
Home Point Real Estate is located in Brentwood Ca and provides service to the East Contra Costa County Communities of Brentwood, Oakley, Discovery Bay, Antioch, Pittsburg and beyond. Give us call regarding Buying a Home, Selling a Home, or Real Estate Investing.