So you are tired of paying some one else’s mortgage and you want to buy a home but you have been told your credit just won’t allow you to. Let me see if I can guess the way the conversation went. You filled out a mortgage application and the person electronically accessed your credit report. They then told you that the report showed you with a middle credit score of whatever it is and they are not going to be able to help you. Or you were informed that they would talk to their investor or a senior loan officer to see what can be done to help. That is so typical of the way most transactions like this play out.
So What’s The Problem
Let’s look at what the problem is. It is actually very simple, your credit score is too low for you to qualify for a mortgage. With the current conditions in the real estate and financial markets credit has become more difficult to obtain and is being some what reserved for higher credit score customers who may be less of a risk to the lender. So what do we do to help you. First of all we need to know exactly where we stand in the credit score department. We then need to know what items on your credit report are driving your score down.
Credit Reports Are Not Totally Accurate
Are there some items on your report that do not belong to you? One thing we have learned is that the credit reporting agencies data is not always totally correct. In fact 79% of all credit reports contain mistakes, 54% of all credit reports contain personal information that is outdated or belongs to a stranger, 30% of all credit reports contain accounts that are closed by consumers but continue to be reported as open and 25% of all credit reports contain errors serious enough to result in outright credit denial.
Let’s Come Up With A Plan
Once we have reviewed your situation and credit report we can collectively come up with a financial plan to get you on track and set up a timetable for you to get into your new home. We can actually tie this all together with the “No Down Payment Mortgage” discussed yesterday.
The Fair Credit Reporting Act
Fortunately there are several laws that have been inacted to protect you the consumer. The most signifacant of these is the Fair Credit Reporting Act. This law protects your credit rights. You have the right to contest inaccurate information in the report and if a creditor cannot verify any inaccurate information within 30 days the inaccurate information must be removed from your credit report. The credit reporting agencies actually receive thousands of these disputes from consumers every day.
How Long Will It Take?
I know you have several questions about how this process works, with the main one being how long will it take? It is impossible and would be unethical for any individual or company to to guarantee an outcome or timeframe. However, based on experience and expertise you will be given an estimate.
If you would like more information concerning credit repair in the Greater Atlanta Area please Contact Me and we can set up a confidential conference.
