If you have a lower credit score, don’t assume that your choices are limited to high-cost loans. If your credit report contains negative information that is accurate but stemming from unique circumstances such as illness or temporary loss of income, be sure to explain your situation to the lender or broker. Take the time to shop around and negotiate the best deal for you. It may be that your past credit record is not as good as you might wish. If you’re currently having credit problems, you should work with a HUD-approved credit counseling organization or agency.
Many offer credit counseling free of charge or for a nominal fee. Understand you may not be in a position to buy a house until your credit issues are resolved. The Following Conditions Will Play a Factor in Your Mortgage Lender’s Decision to Provide You With a Loan :
Bankruptcy: In most cases, lenders prefer that you wait at least two years after a bankruptcy is dismissed before taking on another large debt such as a home loan. Bankruptcies can remain on your credit report for up to 10 years. It may be helpful for you to explain the circumstances of the bankruptcy to the lender.
Foreclosure: Having a foreclosure on your records doesn’t mean that you can never buy another house. The mortgage lender will, however, want to know the reasons for your foreclosure. Most lenders will expect you to wait three years after a foreclosure before you apply for a new mortgage.
Debts: Having too much debt may lower the chances for you to buy a home or reļ¬nance a mortgage. Making late payments or skipping payments will show as derogatory or negative items on your credit report. Taking steps to improve your credit record is one of the most important things you can do.
Many offer credit counseling free of charge or for a nominal fee. Understand you may not be in a position to buy a house until your credit issues are resolved. The Following Conditions Will Play a Factor in Your Mortgage Lender’s Decision to Provide You With a Loan :
Bankruptcy: In most cases, lenders prefer that you wait at least two years after a bankruptcy is dismissed before taking on another large debt such as a home loan. Bankruptcies can remain on your credit report for up to 10 years. It may be helpful for you to explain the circumstances of the bankruptcy to the lender.
Foreclosure: Having a foreclosure on your records doesn’t mean that you can never buy another house. The mortgage lender will, however, want to know the reasons for your foreclosure. Most lenders will expect you to wait three years after a foreclosure before you apply for a new mortgage.
Debts: Having too much debt may lower the chances for you to buy a home or reļ¬nance a mortgage. Making late payments or skipping payments will show as derogatory or negative items on your credit report. Taking steps to improve your credit record is one of the most important things you can do.
No comments:
Post a Comment