While credit guidelines have tighten up quite a bit in recent years, there are many programs to help first time homebuyer’s purchase their home. One frequent question I run into is: “what if my credit is bad?"
My response: what is bad? There are differing levels of bad perceived bad. There are the following:
Your credit is fine - this normally is the accountant/bookkeeper (love that word & its 3 double vowels) that paid an account 1 day after the grace period & thinks they’re condemned to credit hell for an eternity. Don’t let your OCD stop you from applying for a mortgage. Find out before you decide to never attempt purchasing a home.
Your credit needs some work but you still qualify – this person has sufficient good accounts but had an unpaid hospital bill, utility bill or a minor 30 day late with the last year. No worries you will still qualify.
Your credit needs work: You lost your job, got sick,etc. & run into some serious credit issues that may will take time to correct however don’t worry. I’ll recommend you to a reputable credit counselor who can help you make the necessary corrections. PLEASE be patient & DON'T GIVE UP!
Your credit makes me scream Daaaaamn! – In this instance if I added your 3 credit scores together they still wouldn’t equal an acceptable score. I only found a handful of these in 15 years. This client lead deliberately avoids paying everything because they simply didn’t give a (see side picture). In this case, stick to renting because you don’t deserve a home. You’ll even default on your rent. When you start to CARE, call me & I’ll be happy to help. Until then DON'T waste my time or your realtor's!
No matter what your plight, get your credit checked….except for daaaamn credit type people. Please only call me when you decide to care about your future & I am willing to help.
Programs such as PFHA understand that it’s not a perfect world but people are trying. The rates are slightly higher at the moment but still competitive. The bottom line is that you can qualify & start building real equity for yourself & your family.
For those who have hit rough times but DESIRE to get back on their feet, it may be a long & sometimes challenging road. If you have too many accounts & there’s no way you can ever pay them off, a Chapter 7 bankruptcy may be your best option. I would be happy to recommend an attorney. But again, get your credit checked first. It may be not as bad as you think. Always remember that anything worthwhile in life you have to work for.
Sincerely,
Joe Gonzalez
Senior Loan Consultant
Meridian Bank - NMLS #126036
920 Germantown Pike, Suite 102 | Plymouth Meeting, PA 19462 | t: 610.739.6563 | f: 610.351.7810 |www.JoeGonzalez.net
Joe, your title made me laugh so I HAD to read this post. Great info.
Keisha - I'm glad you laughed. I find that humor makes the point stick in your mind. Hopefully some of the prospects out there will read it & decide to at least check their credit.
You provide very good advice for people who think they have no options. Thanks for the explanation.
LOL Joe - I've seen many that have made me scream the same thing. In fact, the numbers seem to increase on a daily basis. And you are dead on - they are credit criminals that have never paid a bill and won't in the near future. We cannot fix that mess but boy do we sure get blamed for it.
Carol - thanks. I hope a few that are on the "credit fence" read this post & act.
Rebekah - I'm glad you understand my sarcastic sense of humor! And yes, we get them all! One that sticks out in my mind is a woman who swore her credit was shot. She had a 700+ credit score! Of course there were many who said the exact opposite. They got a pretty big surprise unfortunately.