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How difficult is it to qualify for a mortgage if you have a
past credit problem?
Credit problems can make it harder to qualify,
but it's quite possible for buyers with poor credit to obtain
a home loan. Anyone who has had a financial problem-whether
it was a matter of late credit payment, delinquent taxes, or
even a judgment that was filed-should expect this data to be
a factor when applying for a mortgage.
How critical a factor?
Minor lapses will probably have little or no effect.
However, buyers with serious problems may still qualify for
a loan, but they may have to pay a higher rate of interest or
provide a larger down payment. There are three steps that a
person with past credit problems should take before applying
for a loan:
Request a credit profile
from one of three major credit reporting agencies.
Second, you should optimize your credit profile
by citing prompt payment of rent, utilities, and other bills
not reported on the credit profiles.
Finally, you should be prepared to provide comprehensive
and candid explanations for any late payments to the loan officer.
This is important because problems not reported, but discovered
by the lender will reflect unfavorable.
Many lenders are understanding about one-time
problems such as the loss of a job, a medical emergency, etc.
Buyers with patterns of delinquent payments might want to consider
adding six months or a year of flawless credit to their track
record before pursuing their home-buying plans.
So remember-if you are thinking about purchasing a
home, but are worried about your past financial record-don't give
up. There are solutions, lenders and agents who are in business
to help.
Specific Property Search - Have Greg
and Marisa do the searching for you - its free, its fun and its
easy.
Search the Entire San Diego Multiple
Listing Service - for available Homes and Investment Properties.
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