Rebuilding You Credit
Ok, this isn't where I am the brightest bulb on the tree, an Mortgage
Broker is best at explaining these things to you. Luckily for me, I know a few.
There have been three primarily I refer people to, and I think I just met a
fourth last week, time will tell. I do not get offered nor would take any monies
or favors from lenders, so I base them solely upon two things, honesty, caring,
and knowledge. So should you.
- Find yourself, or call and I'll be glad to give you the names of
those I refer people to, a good Mortgage Broker. That is a really important
step. The next step will be to ask how you can recover from a bankruptcy, or
slow credit.
- For years, ashamedly I as well, told people to re-establish their
credit by obtaining and keeping it current, a credit card or small loan.
This might work ok, unless you got in trouble, especially with credit cards.
Easily done, been there, done that, and have the T-Shirt, and it was a cheap
made expensive one. If loans or credit cards were your demon, do not do
that. No, no, no. What you are out to do is show that you can make regularly
monthly payments ... that's it. Telling someone with credit card problems to
get a credit card is like asking a junkie to take another pill, or an
alcoholic another drink. There is a better way. You pay a water bill (many
cases), electric bill, and surely there is another, let's see, have a phone
bill? That makes three.
- Most banks and bankers will want at least twelve months of proof
before making a home loan. Remember, they need only three monthly accounts
to base this on. Even something like the babysitter that you pay weekly can
be one.
- Ask at least two, maybe three about what they have to offer, and see if
you get along. Do not go shopping around for a lot of quotes. when you
credit is repeatedly queried, you're score will drop lower. For those tip
toeing the line, it could make you ineligible for a loan. For those with low
scores, they will be lower. Stay offline. Do this face to face or on the
phone to a local company! Think of it like this, the interest is water, the
more people pulling your credit, the more the water rises, remember, water
is interest rate.
- If you have ended up in this shape due to health or lay-off, there may
not have been a lot you could have done. If you have ended up in this mess
because you had to have a new car, flat screen, computer, newest clothes, or
any other reason, remember this. This doesn't mean you are not good, or not
smart, just that you fell into the same trap as many of us have. Do not
regret, rather spend you're energy learning. Something that has worked so
far for me is when I see something I want, I walk off. I tell myself that if
I really need it, I will come back tomorrow and get it. Salesmen call it
procrastination, you will learn it to be intelligence. Most things you will
not come back after, you actually didn't need it anyway, it was just an
impulse.
- Don't expect to get the lowest rates. It is not going to happen. At the
same time, don't expect half service or outrageous rates either. Read the
fine print, whatever you do, make sure of what you are getting and what you
are not.
- Do not expect to get a high pre-approval amount. You might, but then
again, you might not. Whatever limit you are given, remember to go home, not
to a real estate office, and talk. Turn off the TV and radio, (personally
I'd say leave it off), and talk. No matter if it was your fault or not, you
do not want back into this position again. If the amount is high, ask
yourself, "Are we comfortable with this amount? Can we live a good life?" It
may even take you a few days or a week to decide. Hint, the size of a house
will not determine a good life.
- You should be able to trust your Mortgage Broker enough to ask, after
they have reviewed you're data, what loan is best for you. The ones I refer
people to are like me, pretty straight forward and honest. A good Mortgage
Broker will have you're best interest in mind.
- Next, talk with your Realtor. Explain not only you're situation but also
what you would like to spend, ie: what you are comfortable spending. If it
is a low amount, be realistic, a mansion is out of the question, but a
decent house isn't. If you're Realtor does not agree or understand what you
are comfortable spending, get another one. Do not Realtor hop, you only get
the desperate ones that way. Ask the Realtor if the loan type is good.
- Finally, keep this in mind, and close to you're heart. Just because you
fell, doesn't mean you are a loser. Anybody pointing at the person who fell
is the only loser. It is the person that gets back up, dusts themselves off
and learns, and/or the person (s) that assist the one that fell that are the
winners. Remember, when the house closes and is in your possession, it is up
to you to make it a home, money can not buy that, and nobody can sell you
that. Educate Yourself.
But, That's Just My 2 Cents
Anthony Kimbrough - American Homes & Realty Inc