Credit issues preventing you from buying a home loan?
I often run into clients that were turned down by a lender or are trying to slowly repair their credit themselves without an guidance. In some situations, my lenders are able to pre-approve a buyer immediately because not all lenders are created equally. I've seen my lenders do loans that other lenders can't do. Or, I've seen my lenders give advice on how to improve credit, then my buyers purchased homes at future dates. My lenders typically go over credit reports with each of my buyers and give them advice on how to improve credit scores. Also, I have a lender that can do loans for people with credit scores as low as 580 and/or can do a rapid rescore to increase buyers scores within a few days..
For example,I had a past client tell me that he had financial issues in the past and that he's trying to repair his credit on his own over time before he tries to buy a home...this may have taken him a long time considering he has kids and works full time. I asked him if he's applied for a home loan recently? He said no. I said it may be a good idea to apply for a home loan to identify what issues (if any) are present now. I told him that because purchase loan underwriting guidelines are always changing, what may have been an issue for him in the past may not be an issue now. Also, an experienced/proven loan officer/bank (not all banks are created equal when it comes to purchase financing) can tell you as of today what issues need to be resolved and what issues do not need to be resolved. He took my advice, spoke with a loan officer I recommended, and applied for a home loan. He learned that the issues he was going to try to resolve over time with creditors/reporting bureaus could be addressed through the close of escrow when he buys a home. So, in this situation, my client was able to move forward immediately, I helped him sell his current home and helped him buy his next home.
I had another client tell me that he spoke with a bank (let's call them Bank X) and Bank X told him that he couldn't qualify for a purchase loan. I explained to him that some of my clients have worked with Bank X in the past and they bad experiences. I explained to him that all loan officers/banks are not created equal. So, I referred him to an experienced/proven bank (Bank Y) that many of my clients have used in the past. My client met with the loan officer and submitted a loan application. Bank Y told my client that he could buy a home in two months. So, my buyer started looking at homes after one month, got into contract after two months, then closed escrow 30 days later.
Please keep in mind that every person's situation is different and that your situation may not have the same outcome, but it doesn't hurt to obtain a clear picture of where you are at in terms of qualifying for a home loan. If you can't qualify currently, then at least you can learn what specifically you need to do to overcome obstacles that are preventing you from qualifying for a home loan...all of the loan officers that I refer clients to are willing to give advice on what needs to be done so you can eventually qualify for a home loan.
If you do not have a buyer's agent, please contact me, I'd love to help you find a home: (800) 477-0075 x 3 or complete online form, click here. Return to Homebuyer Resource Center page, click here.