 | Randy Vickers is the owner of Priority Mortgage Corp of Wichita, which opened in Jan. 1989, is the oldest locally owned mortgage company in Wichita. Randy has been in the real state business since 1983 and is a licensed real estate broker as well as a licensed mortgage broker. Priority Mortgage Corp of Wichita KS Lic #1996-0122. Randy can be reached at 316-721-7700 |
Real Estate
2005-08-01 08:54:00
‘Hiccups’ on credit report?
: What if my credit report has "hiccups?"
ANSWER: The "subprime" or "6" credit market has become a very large part of the home mortgage lending marketplace in recent years. "Subprime" lending deals with borrowers who have credit problems (hiccups) showing up on their credit report. There are many reasons why a consumer might have a credit report with ‘hiccups’... these include layoffs, divorce, and medical situations. Oftentimes those hiccups aren't a result of a borrower who doesn't pay his or her bills on time, but are due to mistakes that are entered on the credit report by credit reporting agencies. Most mortgage brokers pull an on-line credit report during the pre-qualification appointment, or the actual loan application, for the purpose of determining exactly what they will be dealing with in getting you approved for your new mortgage loan. If there are items on that report that would make getting approved for a new home loan unlikely right now, the mortgage broker will be able to make suggestions to you regarding how to get those things repaired, and the report re-issued with those negative entries off or corrected on your report. Even if the negative credit items are indeed yours, there are a number of ways to take affirmative action to get back on the right track with the 3 major credit reporting agencies. Most mortgage lenders get the consumer's credit score from each of the 3 agencies, and use the middle score for the purpose of establishing your particular loan program.Let's talk about a bankruptcy, and how it might affect your ability to get a new loan to buy a home. If the final discharge of the bankruptcy was at least 2 years ago, and you've re-established your credit in a positive way since then, and assuming your debt to income ratio is reasonably good, combined with at least 2 years of job stability with an adequate income for the desired financing, you should, in most cases be able to be approved for a new FHA or VA loan to buy your new home. Many people who have experienced a personal bankruptcy automatically assume they cannot buy a home, and many times that's just not the case. Mortgage brokers work very hard to make as many loans as they can, and only get paid when they are successful in making a loan.Lots of folks hold off buying a home until they've saved up a certain amount of money for a down payment. There are many new and different lending programs available that can get you into your new home with zero or very little money out of pocket. We'll talk about some of those loan programs in detail next month...
