I've been working in and around real estate for 20 years now. 2 decades! What? Wow! I started my career in banking where I handled a lot of home equity loans and worked with
Repairing Your Credit To Prepare For A Home Purchase 1 Of 4
In today's world there are many people who have somewhat recovered from the recession and housing bubble burst and are beginning to think of home ownership again. If that describes you or someone you know read on.
The recession and, more to the point, the "housing bubble burst" hit far and wide. It affected people from all walks of life, all income levels and all over the nation. It affected each person's credit in their own ways. Some folks have foreclosures on their credit, some short sales, some bankruptcies and a lot have late and non-payments on credit cards or other loans. Most folks have already begun to repair their credit in some non-active ways. By that I mean that they've waited the 2 years after a short sale, they've been in their new jobs for 2 years etc. But now let's talk about some ways that you can increase your credit score a little bit more to apply for a loan with more desirable terms.
Tip #1 - Beware of Credit Counseling Agencies
One step you can take is by meeting with a credit counseling agency (CCA). CCAs, many of which are "non-profit", will offer a free initial meeting where they will listen to your credit issues and suggest some of the items listed in this blog. However, the FCC warns that "non-profit" does not mean "free", "affordable", or even "legitimate". Be aware of statements like,
"Credit Problems? No Problem!"
"We can remove bankruptcies, judgments, liens and bad loans from your credit!"
"We can erase bad credit 100% guaranteed!"
"Create a new credit identity - legally"
The FCC states they have not seen a "legitimate" credit counseling agency that utilizes statements such as those above.
While there are reputable CCAs out there you really need to do your homework on them. But why pay someone when you have the power and ability to repair your credit on your own at no cost to you other than your time.
Talk To Your Lender!!
You are going to see this next paragraph on all of the tips. If you haven't figured it out It is VERY IMPORTANT.
Ultimately, if you are looking to purchase a home in the next 3 to 6 months THE FIRST thing you should do is contact a highly qualified lender to pull your credit and walk you through what you should do and when to be in a position to purchase when you are ready.
There are a ton of loan officers out there and it really matters who you choose. Don't wait any longer contact me today for referrals to great lenders! I am here to help you become a proud home owner!
Regina McKinney is dual licensed, meaning she holds real estate licenses in both New Mexico and Arizona and she actively works in both markets. She is an "outside-the-box" thinker with her finger on t....
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