lower credit score Problems Solver

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 :

Understanding Your Credit

Credit provides a way to acquire merchandise or money with the understanding that you will repay the loan. Your history for paying your bills on time is collected by credit bureaus or credit-reporting agencies. These businesses gather, maintain, and sell information about consumers’ credit histories. They collect information about your payment habits from banks, credit unions, finance companies, or retailers.

Why is it Important ?

Generally lenders look at several things: your income, your down payment or equity, your credit history, how much money you’ve saved, and the property you plan to purchase or refinance. When studying your credit history, almost all lenders look at your credit score and your debt-to-income ratio. Lenders use credit scores, known as FICO scores or Vantage Score, as an important factor in the decision whether or not to offer credit. The scores can range from 300 to 900+ points.

Before you buy a home

Imagine building your house on the sand. When the first rainstorm blows through, your new house will most likely be washed out to sea. Without placing your house on a solid foundation you can not weather a disaster. Building a foundation of knowledge about the loan borrowing process is equally important. Here are five steps to help you begin your journey:

Beginning Your Journey

1 . Before you buy a home, attend a free homeownership education course offered by a HUD-approved housing counseling organization or agency.

2. Gather all your financial documents; check your credit history and fix any blemishes on your credit before you apply for a loan.

3. Determine how much home you can truly afford.

4. Keep accurate notes; make a file and keep all loan documents and correspondence in that file.

5. Shop for a lender and compare costs. Be suspicious if anyone tries to steer you to just one lender. Contact the Washington State Department of Financial Institutions
to ensure that you’re working with a licensed professional.

The Strategy To Get Approved For Credit Application

The following strategies will be helpful in order To Get Approved For Credit Application for Housing Credit bank or mortgage :


1. Financial documents & personal documents required. You need to prepare the following financial documents are usually required for mortgage banks. For an employee who worked at the company, the documents requested are :

* Work in the Company's Certificate (minimum you must have worked at the company for 2 years, or could be less depending on your work experience)
* Original Monthly Salary.
* TIN (Taxpayer Identification Number)
* Copy your savings book to find out your bank account (at least for 3 months).
* Copy of ID card, Family Photo Cards, Photo Copy of Marriage Certificate, or may need to be prepared a letter of domicile of the RT / RW.
* Letter of citizens (for the citizen offspring).

For entrepreneurs, the documents requested by the bank as follows :

* Your Customer List (if possible)
* List your supplier (if your business is trading business)
* Proof of your financial transactions with customers (such as receipts or invoices)
* NOTE: Bank account (at least for 3 months)
* TIN (Taxpayer Identification Number)
* Business License (trade license), if your business is trading business.
* Sign Companies list (TDP)

2. Prepare guarantee completeness of the documents to be filed. If you buy a house on credit, then the completeness of the documents home to be purchased will be asked by banks for collateral to them. That is, if your credit is bad then the house will be seized by the bank to replace the debt remaining unpaid. What are the documents?

* Certificate of Land
* Certificate of IMB + Blueprint or drawing of the house.
* UN SPPT Last Year

When you buy a new house from developers, then the developer will prepare the documents above. Documents on the document will be stored by the bank until the bank's mortgage home loan is paid off. When you buy a second house, it must be ensured that the documents above there. Before submitting a mortgage bank.

3. Your Financial Performance. Your Financial Performance. Financial performance in the current account savings should be good or repaired so that when the bank was impressed by the good reviews. A good appearance checking account would increase the likelihood of approval of the mortgage bank.The following tips will be useful for you:

* Improving the Bank's account records held. Keep in mind that the bank will ask for pay slips as the official record that the person who filed the mortgage bank has with a certain amount of income each month. Paycheck will be in the cross check with a savings bank account statements to prove that there is money coming in for the listed salary slip. What if your salary is not transferred (eg you work freelance or professional)? Try to deposit your income into a savings account first before playing for the benefit of others, and where can you keep your savings occur direkening income of at least 6 months.
* Smooth debt elsewhere. When you owe at another bank, whether in the form of loans such as credit card what aja etc., then try not to ever arrears within 6 months of the canopy. The bank will check the history of your debts in bank debt. Where the credit crunch never happened a few months back, you should reconsider plans for mortgage bank, at least you need a period of 12 months after a bad credit or arrears in order to consider that your current financial condition is healthy.
* Setting the proportional debt repayments. When your total installment debt in the bank (eg an existing fixed installment payments + credit card + bank mortgage repayments to be filed) exceed one-third of your monthly income

When the option is set, and bank home lender you choose which is appropriate, then stay visit the bank. The bank will provide the above requirements along with the form field that you have to fill completeness to be returned to the bank. After all requirements handed back to the bank, usually surveys and interviews will be conducted by the bank.

After the bank's home loan application is approved, the next step is to see to the signing notaries deed of sale / credit and manage certificates.

Almost all banks provide mortgage banking services. You just select and compare each corresponding advantages. Current mortgage is not just to buy a house, but also for building a house on land that already exist.

Hopefully the article above is useful for those of you who will ask a bank loan when the funds needed to have a dream home is not available in cash.