WE CAN HELP YOU WITH YOUR CREDIT ISSUES
As we have we indicated on another page of this site we are able to sell homes to people who are cash and or credit challenged. In doing so we require that you enter into a credit repair program and or seek counseling to improve your credit worthiness over the next 1 to 3 years. By doing so you will ultimately be able to refinance the home you purchased or are renting to own from us. We have several companies we can recommend or you may select one of your own choosing. While you are working toward the time you can refinance we will be doing everything we can to help you be in a positive position to be able to successfully finance or refinance you home.
Credit Score Information
There is a lot you can do to improve your credit. If you need help, contact us. Without good credit, as you may be painfully aware, you can find yourself facing obstacles at every turn. These days, it is absolutely imperative that you work toward the goal of a higher credit score. Several options are available to clean up your credit and your credit score. Take a look at the steps below as a good start; Contact us if you would like us to explore putting you in touch with Credit Repair Specialist in your area.
Improving your credit score. Slow and steady wins the race. The best advice is to manage your credit responsibly over time. See how much money you can save by just following these tips for raising your credit score.
- Pay your bills on time.
Delinquent payments and collections can have a major negative impact on your FICO score.
- If you have missed payments, get current and stay current.
The longer you pay your bills on time, the better your credit score.
- Be aware that paying off a collection account will not remove it from your credit report.
It will stay on your report for seven years.
- If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.
This won’t improve your credit score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.
- Keep balances low on credit cards and other revolving credit.
High outstanding debt can affect a credit score.
- Pay off debt rather than moving it around.
The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.
- Don’t close unused credit cards as a short-term strategy to raise your score.
- Don’t open a number of new credit cards that you don’t need, just to increase your available credit.
This approach could backfire and actually lower your credit score.
Length of Credit History
- If you have been managing credit for a short time, don’t open a lot of new accounts too rapidly.
New accounts will lower your average account age, which will have a larger effect on your score if you don’t have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.
- Do your rate shopping for a given loan within a focused period of time.
FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.
- Re-establish your credit history if you have had problems.
Opening new accounts responsibly and paying them off on time will raise your credit score in the long term.
- Note that it’s OK to request and check your own credit report.
This won’t affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.
Types of Credit Use
- Apply for and open new credit accounts only as needed.
Don’t open accounts just to have a better credit mix – it probably won’t raise your credit score.
- Have credit cards – but manage them responsibly.
In general, having credit cards and installment loans (and paying timely payments) will raise your credit score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
- Note that closing an account doesn’t make it go away.
A closed account will still show up on your credit report, and may be considered by the score.
SECOND CHANCE FINANCING
As mentioned in our Buy a Home section, it’s not always possible to obtain seller financing. If you have you experienced a foreclosure, short sale or even a bankruptcy in these past few years you probably think you can’t buy another home for years if ever. If your like most people you’ve probably been told you won’t be able to buy a home and get a mortgage with a mortgage company for 7-10 years.
Now granted there are other ways to buy a home without a mortgage company but lets face facts, that does reduce your choices of homes. As we mentioned before, not everyone is willing or able to carry back the mortgage for you. Not everyone is interested in doing a lease option, a contract of sale, a land contract or any of the other numerous ways that we do work with all the time. Also maybe your not comfortable with any of those methods, they are definitely outside the box so can be a little scary to a lot of regular buyers.
Well for buyers here in the state of Nevada there is a new conventional alternative. PREMIER MORTGAGE LENDING is a licensed mortgage company with headquarters here in Las Vegas. They offer conventional mortgages to people with past credit problems. Past foreclosures, short sales, bankruptcies, etc in and of themselves are not a problem. If you have experienced those type of issues and made a serious concerted effort to deal with the problem and just couldn’t make it work out Premier takes those efforts into consideration. They have no specific credit score requirements and no specific debt to income ratio requirements, every case is looked at on its own merits and circumstances.
Premier Mortgage Lending has three separate second chance programs available ranging from 20% to 35% down payment requirements with interest rates between 8.5% and 9.5%. Those rates are not based on the degree of past trouble, your credit score, or debt to income ratios but are solely dependent on the particular program used for your circumstances.
Now I realize the down payment may be a problem but there are ways they will allow you to deal with that issue. I also realize you may be saying WOW, that’s a high interest rate, and your right, compared to the current going rates at least. But ask yourself, can I get a mortgage with my credit history at the current going rate? Obviously if you could you wouldn’t be taking you valuable time to read this.
What is important to you? If it’s making payments on YOUR OWN home, building equity in YOUR OWN home instead of paying your landlords mortgage for him then this may be your answer.
My personal approach has always been; Do I want the home? Do I have the down payment or do I have some way I can get it? Can I handle the monthly payment? If the answer is yes to all three questions, and it has to be all three, then I don’t really care what the interest rate is. The interest is tax deductible so a portion of that money is going to come back to you at tax time. And actually it is possible to calculate what your return will be based on the interest your paying and have your withholding adjusted so you get that tax money in your pocket every month to offset some of that payment.
Plus your not locked into that for the next 30 years. When you have gotten your credit cleaned up, which paying your own mortgage payment instead of your landlords will go a long way toward helping to accomplish, you can go refinance the balance of the mortgage with a conventional lender at the current going rate which will lower you monthly payment.
If you would like additional information regarding this great new source of financing the purchase of YOUR OWN home please call Andrea at Premier Mortgage Lending at 702-485-6600, extension 103 or feel free to contact me for additional information.