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Buy a home with bad credit,renters

Why an Extensive Negative Credit History Might NOT Hurt the Homeowner

31 Dec , 2014  

Did I just go against the grain here? Yes, I certainly did. In all the annuls of literary discourse talking about bad credit, zero down homes, rent to own, and real estate in general, one thing does remain to be a constant: you don’t want a negative credit history. Right? Yes, that’s true, but don’t call it quits on getting a home loan or even qualifying for anything else due to your bad credit. It’s not as “bad” as it may seem, and here’s why:

Believe It or Not, But the Simple Fact That You’re a Homeowner Will Make Your Credit Historynegative credit stain “History”

Your history of bad debts will be a stain, yes, but let’s be realistic here. They’re just stains. They can be washed off at some point. Moreover, this is what you have to understand about a negative credit history and how lenders will view it: they’ll put more weight on what you’re currently saddled with versus what you’ve had to face in the past.

That simply means if you have charge-offs on your credit report from perhaps ten years ago, don’t sweat it. Lenders focus on what’s going on with you right now. They’ll look at current accounts. They need the current stuff to accurately gauge just how much or how little of a credit risk you really are.

In fact, the option of selling your home and paying off your bills, or even renting out your home to take care of your debts, proves without a shadow of a doubt that being a homeowner for the most part automatically puts you at the top of the list for home loan approval. Just remember: it’s not about how much owe, it’s about how often and on time you’ve paid consistently.

You at Least Have a Credit History

There is something even worse than bad credit, folks. It’s called “no credit.” So count your lucky stars. A negative credit history will be a minor disadvantage, but an immediate disqualification from everything regarding a home loan, car loan, to even an American Express card, is the result of no credit history for any lender to base a decision on.

How is the lender supposed to know if you’re going to be a risk or not? In a way, it’s even more of a risk going in blind than at least seeing what the possibilities are. After all, a lender has to do business somehow. Seeing that there is at least some credit history will determine a lot.

Don’t Be Too Hard on Yourself

The HOPE Program insists that you keep your head up! Give us a call, and you’ll see what we can do for you. If you don’t believe it, just ask the over 13K people that see it with their own eyes. You can get approved. You can be a homeowner again. You can make your home ownership work for you.

Contact H.O.P.E. to Own today.

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Buy a home with bad credit

3 Things You Need to Know About Being Your Own Credit Score Watchdog

26 Dec , 2014  

Your credit score, in many ways, is your lifeline, your genetic code, DNA, fabric of your very being (not really); and sadly, not many see it that way. All that credit score shows you is how great you are (or not) with paying your bills. That’s it. That’s nothing much to consider, is it? Oh, but it is, especially when that score makes the difference between you owning or not owning a home. Or a car even. That credit score makes DNA credit scorebig difference.

You Have to Keep a Watchful Eye on Your Credit

This isn’t just because you want to make sure you don’t miss any payments. The fact is this — everyone out there has slipped up and forgotten about a payment or two, and just about no one has ever obtained a perfect credit score. The main reason, though, why you need to be a watchdog with your own credit rating is this: you’re not the 0nly one who can make a mistake! Why do you think there are three major credit bureaus out there? Equifax, Experian and TransUnion. Inaccuracies abound for every individual in the United States, so as efficient and correct as these bureaus may be, even the most thorough specialist can slip up and cause a major ding in your credit report, preventing you from even having the ability to borrow money from a bank. In many cases, your credit score can even determine whether or not you’d be a good employee! Yes, your credit rating can directly affect your employment. So why sit on your hands and let faceless people determine your credit score for you? Be proactive. Be a watchdog by following these three steps:

german shepherd credit scoreWrite a Letter to the Credit Bureau That Made the Error

Whether it’s Equifax, Experian or TransUnion, it doesn’t matter; mistakes happen. If you review your credit report and you see a problem with one of them, your first step is to address that bureau in writing. It’s just a typical letter with your name and address, plus details as to what the error is and why. Substantiate it. Treat this as if you’re a lawyer, arguing a point. Always stick to the facts. Include all the relevant evidence as well: original documents, receipts, canceled checks, invoices. The more information, the better. To make it even easier, enclose that copy of your credit report and circle those erroneous items, whatever they may be. Be sure to send a similar letter to the company or lender regarding the transaction as well. Both letters need to be sent through certified mail with return receipt requested. As you may notice again — this is truly legal protocol, methodical, almost military documentation style. This is the type of watchdog you need to be with your credit score — a veritable German Shepherd.

Now, Naturally, the Credit Bureau May Respond

Under law, a credit bureau must investigate claims within 30 days. So pay attention to your calendar. Typically the bureau will forward the dispute to the correct department, determining any errors if necessary. What you need to expect is a document in writing explaining the results as well as another free copy of your credit report. This is all legally mandated by law. Additionally, correction notices can be requested for anyone receiving your report in the past six months. In essence, you’re covering all your bases.taking notes credit report

Get Your Dispute Written on Your Credit Report

Believe it or not, but you can do that. Anyone viewing your report and your credit score will see that you have, in fact, disputed a particular transaction or account. This benefits you as far as anyone’s interpretation and evaluation of your credit score. The statement doesn’t have to be more than 100 words. Just something simple stating that you’ve “disputed the information.” In addition, you can file a complaint with the Federal Trade Commission’s Consumer Response Center by phone (877-FTC-HELP), or even file the report online. You don’t have to hit a brick wall here. If you truly believe there was an error, pursue it until you receive at least some relief. The accuracy of your credit score and report matters.

It’s Your Yard: Protect It

Just remember: your credit score arises from something. It’s your right to know what that something is. That’s why you can obtain a credit report and review all the details. If anything looks off, don’t hesitate; investigate it. Why? Because you never know if you had discovered an error that could be eliminated, making the difference in obtaining your rent-to-own home with the assistance of the H.O.P.E. to Own program. Be a watchdog.

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Buy a home with bad credit

5 Steps All Newlyweds Must Make as First-Time Homeowners

22 Dec , 2014  

Breaking into the real estate market can be equated to breaking into just about anything: a bank, the White House, the music industry. It’s difficult. You need to know how to “pick a lock” and get in and out swiftly, or you’ll end up stuck in a waiting game that perhaps could be more agonizing than jail time. Thankfully, though, the real estate market risk we’re talking about really has nothing to do with any criminal activity!

Rather, when you hope to own your first home — particularly as newlyweds — you have one thing to worry about, one thing that no mortgage company would ever ignore. That’s your credit. As a first-time homeowner, you better pay close attention to it.married homeowners

As a Newly Married Couple, You’re Not Alone

One would think that getting to be a first-time homeowner should be easier when buying a house together with your spouse. That’s not always the case. When applying for a mortgage, know this — the company will review the credit history of not just you, or your spouse, but both. And that can get complicated.

What if your spouse generally has bad credit? Even if your credit’s spot-on, that low number can make the difference between signing on the dotted line and having the keys to just getting the ‘no’ and sigh equivalent to that of a dentist disappointed at your numerous cavities. No one likes to hear the words “I’m sorry, but we can’t approve.” It’s almost like a slap in the face. All it takes, potentially, is one blemish on your credit report, and your ability to be a first-time homeowner’s shot down.

You can prepare, though, well before you walk out of the church as man and wife, well before you sign the marriage certificate — even well before you propose or get proposed to — with these five steps.

Step 1: Credit Reports, Credit Reports

Know what your credit score is. As a soon-to-be first-time homeowner, that’s a must. Get that credit score long before you even apply for that loan. The same will go for your soon-to-be spouse. If you can gather those scores and know where the problems are, you can fix them long before you apply for that loan.

credit reportStep 2: Whether You Like It or Not, You’ve Got to Quit Your Habits

It does sound a lot harder to do, doesn’t it? We’re always stuck in our ways. However, bear in mind this important fact: you’re about to get married. Let’s pray you’re not already at this step with the rings on the fingers. The point, though, is that you’re making a big decision. You’ve made the choice to join lives with someone else — finances, home, future, everything — without looking back. This often can result in some lifestyles changing. Without a doubt, one of the lifestyles you may have is the ability to be liberal with your spending and let the debt just pile on while you wait to pay it all back “later.” Don’t wait. Change now. Catch up on your bills. Get a system of payment going. You thought it was difficult to keep up on the credit card payments as a single bachelor/bachelorette? Try doing it married as a first-time homeowner.

Step 3: Get a Credit History

Don’t be afraid to face the possibility of blemishes on your credit report. Why? Because no credit is actually worse than ‘bad credit.’ That’s right. The next step is to simply get some credit going. You need a record to even possibly get approval for a home loan. Yes, that means obtaining a credit card and buying a few things — a candy bar, dinner at Applebee’s, or whatever. Just pay it back immediately. When you pay it back, it shows up on your credit report. bills-loans-creditThis is the stuff mortgage companies will see on your credit report. They’ll see you’re reliable. You pay on time. You’re diligent. If you have no credit history, how can they make a decision?

Step 4: If You Do Have Good Credit, Handle the Loan on Your Own

Your spouse just might have to sit out on that venture, sorry to say — but only if your spouse has crappy credit. Think about the future and let’s not let this be about ownership. The fact is this: you want approval for that home loan, you need to ensure that the credit report is as flawless as possible. If you have to be the one applying for the loan in your own name, do it.

Step 5: Lastly, Look at Some of the Alternatives You Have

It’s not the end of the world if you get a denial for a home loan, people. Your goal of getting your home as a first-time homeowner will be just a bit more difficult, a little more complicated. You do have options. Consider a sub-prime loan, a type of loan that’s a bit more expensive for you marriage lifedue to the increased risk for the lender. For instance: you might face mortgage rates of 7%, which isn’t too bad; however, because you and your spouse have bad credit, you’ll have to pay 9%. Not much of a sacrifice when you think about it, especially when you get to have your very first home.

Prepare for Your Life

This is just the start of what you have to face, and you haven’t even had the chance to worry about whether or not you can handle your spouse snoring at night or the socks left in the bathroom! Or perhaps you have experienced that — in an apartment.

The next step is undoubtedly getting to be a first-time homeowner. In order to get there, though, you have to be prepared. Prepare with these five steps. The H.O.P.E. Program can help. Visit us today! But don’t forget to hang your wedding pictures on the walls of your new house.

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