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Credit is not a barrier to home ownership

admin • Sep 30, 2013

Many consumers do not believe they can own a home due to their credit. I have seen consumers who thought their credit – because of past collections, tax liens or judgments – would keep them buying a house for seven years. This couldn’t be further from the truth.

I specialize in preparing credit for a home loan qualification. I have seen loans done with as little as 580 credit score. I work with a lot of mortgage lenders and have seen this happen firsthand.

Another thing that many consumers do not know is that you can have up to $1,000 in negative debt and still qualify for a home loan. Mortgage lenders go by your mid score: if Equifax is 660 credit score, Trans Union is 640 and your Experian is 200, your lender is going to go with 640 credit score to qualify the loan. Even if you have a present “late pay” on your records (as long as the late pay can be explained), you can still qualify for a mortgage.

Another good point to be aware of is that every three years you go without owning a home you become a first-time home buyer, which comes with (in most cases) down payment assistance through Mortgage Finance Authority. So if you lost a home to foreclosure four years ago, you should be okay to buy again within three years. (There may be some exceptions to this, but you will not know unless you try right?)

This is one of the best times to buy a home in history with very low interest rates which will allow you to have low house payments for what you already paying for each month in rent. Do not attempt to buy a home unless your financial environment is stable, of course, but don’t let vague worries about credit stop you.

Home ownership can be an important piece of your retirement. You owe it to yourself to explore options.

Until next time, good credit to you.

Red light camera tickets a credit risk

By admin • 02 Oct, 2013
Red light camera tickets a credit risk – About a month ago I started getting calls from banks and mortgage companies that their loans all over Albuquerque were falling through for auto and mortgage loans. The reason? Years of red light camera tickets recently went into collections, all at one time, and thus put on the credit reports of Albuquerque consumers. Sure enough, I had many clients come in to have meetings to see if they were credit ready wise. Scores were knocked down between 35 and 45 points for each collection entry for these red light tickets.

Keep lease judgments off credit history

By admin • 02 Oct, 2013
Keep lease judgments off credit history – I have seen many cases on my office of consumers with judgments on their credit reports due to early termination of a lease. In many cases the lease was walked out on due to a hostile living environment. Whatever the case, there are things to get this mark removed from your credit history.

Don’t let someone else’s credit problems slow you down

By admin • 02 Oct, 2013
Don’t let someone else’s credit problems slow you down – Cross-referencing of others on your credit report – credit information that erroneously shows on your report because another person shares identical or similar name – can cause great financial hardships and has become an epidemic. I get one to two cases of cross referencing, and if the person you’re being cross referenced with has negative credit history, this will completely shut down your ability to get A+ credit.

Your own personal credit FAQ

By admin • 02 Oct, 2013
Your own personal credit FAQ – I get a lot of questions at Credit Rescue Now, Where we counsel consumers about financial landscape and how to make sure their credit remains strong and sound. I thought it would be helpful to put together a list of frequently asked questions and answers. I hope this information is helpful.

Take care of your credit while renting

By admin • 02 Oct, 2013
Take care of your credit while renting. People know what major financial step home ownership represents, but we often overlook the financial and credit implications of renting an apartment or home. There are some important things to consider.
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