Saturday, September 1, 2012

Think Good Credit is not Important?

Think Good Credit is not Important?
Whether renting or buying, having good credit is vital!

Think again~!

Good credit is very important if you want to get ahead in this world financially, and especially if you want to rent or buy a home.  I can still remember the days when it seems lenders would approve a home loan for any adult with a pulse who was willing to sign the application, however that is no longer the case. 

Most landlords also check credit and background when you apply to rent a house or apartment. So face it, if you want a nice place to live, you must have good credit.

I was reading an article today that addressed credit and things you can do to improve your score, and I felt it was worth sharing.

Follow the tips above and you can begin to improve your score in as little as 3 months.

But credit is not the only thing that lenders consider.  They look at income and debt ratios and time on the job, and especially for self employed borrowers time in business is of utmost importance.  You must file two years of tax returns in your business that show sufficient income in order to be considered for a mortgage.

Whenever I talk to prospective buyers, I advise them to get preapproved for a mortgage first before looking at homes, because there is nothing more disappointing for both the buyer and seller than getting turned down for a mortgage at the last minute before closing.  And when you speak to the lender, be truthful and provide them with your income documentation to include W2s and your tax returns. The approval is only as good as the info they receive from you, and the approval always has conditions, so make sure you give the loan officer accurate information and let them know about all of your debts.

There is no real approval unless it has been reviewed by an underwriter, this is where the buck stops.  Don't buy a new car, refrigerator, or new furniture or do anything at all to change your debt situation from the time you apply for the loan until you have actually signed the closing papers because they will check your credit and employment the day before closing and you will have to sign something at closing that says your financial situation has not changed since applying for the loan.

If you have a recent copy of your credit report and would like some advice about how you can improve your score, I will be happy to review it with you and help you come up with a plan to improve your credit and you will be a homeowner in no time!  

Just give me a call at (850) 473-3983 or email me your list of questios

Here for you,
Pam Keen Brantley, Certified Residential Specialist
The Realty Masters team at Keller Williams Gulf Coast

1 comment:

Thank you~ Enjoy your day and check back with us for more great information on the Pensacola area!