82 percent of our clients have a motivation on repairing or rebuilding their credit report is for a Mortgage loan approval. Due to this, we offer for each enrollment with a goal of a mortgage in mind, out Home Loan Assist™ workbook. An independent consumer guide developed to deliver mortgage approval specifications. A step by step, credit management tool offering various mortgage related education topics and credit building tactics structured on nationally known, home lending requirements.
The sound of being a home owner and purchasing is exciting, a mortgage is, for most, the largest investment one will ever have. Making sure the buying process goes smoothly is extremely important. Understanding your rights, options and the financial investment involved is key. The Home Loan Assist™ Handbook delivers education and understanding in various areas of the path to home ownership.
Buying A Home
The simple understanding of buying a home means accomplishing for most Americans, their life goals. It is almost human nature to day dream or idealize a place to call home. Having the freedom to decorate the entire house and paint all of the rooms without asking permission from the landlord is almost too good to be true. True home ownership and the feeling of it, is unlike any other. Unfortunately, for millions of Americans, the act of applying for a home loan and being approved is very difficult to achieve. The ability to receive approval for financing a home loan is difficult due to: poor credit history, bad credit scores, and a lack of saved money for a down payment. The process of receiving financing for a home is a very complex, complicated ordeal. It takes planning, organizing, budgeting, finding a real estate agent, a loan officer, and most important, effort on your part.
Your credit score and credit report profile makes the difference between being approved for a home loan and being denied. The reason is, your credit report delivers a financial risk assessment on your lending history as payers of debt, and it has a very vast memory. It is almost unheard of to go without making a single financial mistake, or calculated financial decision that would hinder your score in turn. The lower your credit score, the riskier you are to a lender. This makes is very difficult, and at times impossible to acquire home loan approval. Prior to house shopping and hunting around doing the fun stuff that everyone loves to do, it is imperative to take a good long look at your current credit profile and study your credit report. If needed, correct and clean it up as much as possible. The correcting and cleaning really depends on the current severity of your credit situation as a whole. It could take a few months to 12+ months to fully clean and correct one’s credit history and buying power. The most important factor in your credit report restoration process is to take each step in a calculated fashion by making sure each improvement step raises your credit score and further directs you and your profile to a point where you can obtain a home loan and meet all mortgage loan requirements.
Our First step
Figure out where your credit stands.
If you are working to improve your credit in order to buy a home, remember to continue to keep an eye on your credit reports. This is important because they will continue to change and are not exactly the same. You need to know what is contained and reporting each month within each one. Remember, most creditors send your monthly reporting information to all three agencies, some only send reports to one or two. When a mortgage lender pulls your report to check your history, they will use the middle score from all three to decide whether or not you will qualify for a loan.
If you are not currently enrolled into an online monthly credit monitoring site, our team highly recommends you do so. If this is not an option that can be financially supported, order a copy of your credit report. By law, you are entitled to a free copy from all three bureaus. Call a Solutions Specialist from CreditServices.com™ to receive more information on both online credit monitoring preferred partners or the free yearly option.
complete a credit audit & profile consult with one of our credit advisors.
CreditServices.com™ offers a trademarked client engagement workbook, the Credit Guide™. This comprehensive repair guide is designed on a per client basis and is personalized to fit each consumer’s needs. Upon enrolled in either GOLD, SILVER or BRONZE Service Levels, each client receives this detailed custom repair guide upon conclusion of the consultation and credit report assessment. The customized Credit Guide™ is constructed to improve service accuracy and credit improvement management throughout the client’s engagement in services with CreditServices.com™.
Value & Facts Behind Home Ownership.
Ownership delivers a sense of security; it allows you the freedom to do things to make your life richer such as redecorating, planting trees, digging up the garden, or home additions. Ownership will save money over time in a good market and provide the capital for your next home if you ever purchase a new home. Buying a home is an investment, not only in the financial aspect, but also in time and emotional commitment. For many, home ownership provides the following benefits.
A mortgage loan deduction is still a remaining IRS deduction. What this means is the interest you pay on your home loan can save you a significant amount of money. When you make monthly mortgage payments, the interest is deductible for the life of the home loan. For the first ten years or so, most of your home loan payment goes to interest, and can truly lower the amount of tax you owe. The future ability of selling your home for a profit is a strong financial advantage. In a strong sellers’ market, people can make thousands of dollars when they sell their home. This creates financial growth personally and in most cases for the economy knowing most spend the assets in the market. Building equity by keeping your home for a long time and paying down the mortgage loan equates into valuable equity. Equity is the value of your home minus the mortgage loan balance. If your home is worth $150,000 and you owe $70,000, your equity is $80,000.
Lenders often try to push the loan and want to generate more mortgage loans, you will find yourself magically qualifying for a mortgage loan larger than your current income. Resist the urge, work your way up over time. This will deliver less financial strain.
Building Your Credit for Approval.
Find out your credit score.
You will be able to develop a better plan for the work ahead if you know your FICO™ score and have examined your credit report.
Correct Your Credit Report.
Credit fraud, identity theft, and honest mistakes can negatively affect your credit report and score. In many cases, CreditServices.com can facilitate the removal of invalid accounts on your report.
Pay bills when due.
Bill payment is both the most basic aspect of your credit and the most important: payment history makes up 35% of your credit score. A good payment history tells potential lenders that you are wise with your budget and prioritize your debts. In other words, you are considered to be low risk, so it lets them know that you’ll pay them back.
Reduce your debt.
30% of your credit score is determined by your outstanding debt. Lenders use this information to determine whether you can pay them back and still meet your current obligations. Reducing your debt is key to acquiring a large line of credit, such as a mortgage. Pay off as much of your debt as possible and eliminate lines of credit that you don’t need. Begin with those that have the highest interest rates to save as much money as possible.
Do not apply for credit.
In addition to increased debt, applying for more credit allows potential lenders to run an inquiry on your credit. Recent inquiries make up 10% of your credit score.
Rebuilding your credit can and will take time. Credit history length alone affects 15% of your credit score. If you haven’t had credit for long, don’t worry, this should not affect your ability to receive a good mortgage rate if you are being responsible with the four other factors. In addition, patience will give you the perspective to hold off on unnecessary purchases, further reducing your overall debt.
Want More Information on Mortgage Loans and what steps are to be taken and when?
Contact our support team and we will send you our 21 page, Home Loan Assist™ e-book packed with comprehensive information.