First Time Home Buyer - Credit Building

Many clients that want to buy a home are not able to meet the requirements of Underwriting because they do not have ANY credit or NOT ENOUGH crediit. I can show you how you can build a credit report and help you get financed to buy that home you want.

What is a "thin credit file"?

Quite simply, thin credit file means you do not have 3 items on your credit report that are open and active and have a 12 month payment history. Some people pay for everything with cash because it keeps them from over spending, or they don't want to pay interest or fees to finance something. While those are effective ways to save money, you can't buy a home with a mortgage if you can't prove that you can borrow money and pay it back consistently.

Where can I find out what my credit looks like?

Everyone is entitled to a FREE credit report once per year (http://www.annualcreditreport.com ). You NEED to do that every year to make sure everything is accurate. When you do a loan pre-qualification, we need to run the credit report and we can also view it that way. The problem with waiting until your loan pre-qualification for a credit pull is once you have that pulled, most errors take 30-45 days to get removed.

HOW do I build BETTER and/or NEW credit?

When I get your loan application, and have determined that we need to work on credit score OR ifyou have a thin credit we have a 4 step plan:

1. ANALYZE- I will usually run our ONLINE Credit Analyzer with you that runs an infinite number of hypothetical scenarios to help you determine which items that need your attention are.
2. PAY You may be asked to pay down the credit cards and
3. NEGOTIATE- if you have older non-medicalnegotiate the older collection accounts WITHOUT paying.
4. BUILD- Remember to keep building new GOOD credit.
   1. Adding to a mother or family members account is good.
   2. Getting more good credit in BOTH names if possible is GREAT!

Where Can I Start a NEW credit account with little to no credit

It's never too late to build credit. If you only got 1 or 2, try to do another today!

Capital One

Easy and fast are Capital One, they do NOT offer secured cards, but they have the Classic card...link below. http://www.capitalone.com/creditcards/products/details/?sol=11170&tc=17&credit=3&linkid=WWW_0608_CARD_TGUNS01_CCBRWALL_C3_02_T_CP17017LW

OR
http://www.orchardbank.com here is a link to Orchard Bank secured card
http://www.landing.orchardbank.com/1/2/media/disclosure?cmd_lpage=&indicator=OB088&media=O5IS102DAX0805000601HPHHX&WT.ac=CRS_IM000601