A Division of Addleman Law Firm

Get Mortgage Ready

Make your credit Mortgage Ready

These are some of the obstacles that could hinder you even if your credit score qualifies for getting a mortgage:

  • Bankruptcy – Some mortgages will work with a past bankruptcy. But you usually need to be several years past the discharge date and have rebuilt your credit. A bankruptcy, even when discharged, can stay on your credit report for up to ten years.
  • Foreclosure Shortsale– Some mortgages will work with a past Foreclosure Shortsale. But you usually need to be several years past the sale date and have rebuilt your credit. A foreclosure- shortsale, even when finalized, can stay on your credit report for up to seven years.
  • Unpaid judgments – No mortgage lender wants to take the risk that an earlier debt could take precedence over their loan. All judgments must be satisfied,removed or vacated from your credit report. And, if paid, your judgment will stay on your report for seven years. Solve open judgments. Try to vacate them first or pay them and get proof that they’re paid. Yes, I know it hurts to take money out of your hard-earned down payment savings account. But that down payment won’t do you a bit of good if you can’t get a mortgage because of an old judgement  from the cable company you fought with in your first apartment.
  • Open collections – If you don’t pay a bill, the company you owe may sell your debt to a collection agency who will try to get you to pay. If you have too many a mortgages.may make you pay some off collections on your credit report before you get a mortgage.ONLY PAY THEM OFF IF YOU ARE TOLD TO DO SO Keep in mind that paying a collection will not raise your credit score,but LOWER YOUR SCORE. Once a debt has gone to collections your credit is hit and can only recover over time.
  • Too much monthly debt – A good rule of thumb is that if you’re paying more than 5% of your gross monthly income for debt payments (credit cards, student loans, car payments, personal loans), you’re decreasing the amount of mortgage you’ll be approved for. If your income is high and housing prices are reasonable, high debt might not hurt you much. But if you have a modest income, debt can price you right out of a mortgage.
  • Pay your current bills on time, religiously. You’ll need the boost to your credit score if you’ve had problems in the past. And you’ll want to prove to a lender you’ve gotten past old issues and made a fresh start in rebuilding your credit.
  • Make sure the problems are right. If not, you must dispute them off. Experts disagree about how many people have serious errors on their credit reports, but I have witnessed a client who found a spouse he never knew he had when lots of strange information turned up on his credit report. Don’t pay the price for someone else’s mistake.

 

Certified Credit Experts can Help you on all these ,plus many more.

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Our journey started more than four months age with the nail-biting process of preparing the financials.  Shelly Rex of Certified Credit Experts worked tirelessly with our lender to make sure we were approved for a loan.  Thank you so much!!

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