What If I Have Horrible Credit?
For years you paid all your bills on time. You had a great credit standing and could easily qualify for any loan you needed.
Then you lost your job. Or someone close to you did. Maybe it was a serious illness. Maybe all three.
Now no bank will touch your loan application. They're all terrified anyway. Bad loan decisions may mean their job could be toast too. Working as a collector to hound people for money they don't have is not the same pay grade as skilled loan officer or manager.
Think you are locked out of home ownership? Maybe; for a time. But maybe not. Especially if you know what to do to get back in the game.
It takes work. Some cash. And determination. You need to demonstrate regular income to handle the planned payment. Heck, you have to do that just to rent.
But with real estate prices as low as they are, and with interest rates as low as I've seen in over 50 years, what a shame to miss such opportunities as are all around you. Especially when you have better options.
There are three steps.
- Get a current credit report to see just what needs to be addressed. Nationally, an estimated 40% of credit reports contain significant errors. You can use the free annual report website, but it is better to work with a clued in mortgage pro to review your report with you and provide skilled guidance.
- Address the issues found. There are specific rules concerning how lenders report credit activity. If you don't know how to work within these laws, consider a quality credit repair service to assist you. Banks and the credit bureaus will tell you there is nothing you can't do on your own for free. That's true as far as it goes, but assumes you know what to do. If this is not your skill set, consider the cost of making things worse through innocent ignorant errors.
- Work with an experienced real estate agent who understands modern rent to own transactions. They can get you into a home that will be your own. There are specific steps to follow to do this correctly. Good agents in our network can assist you in nearly any state, with no up front costs.
Only you can decide if the effort is worth it to you. But ask yourself, "What is the value of 10 years of paid rent receipts?" before you give up on your home ownership dreams.
Will this work for everyone? No, of course not.
Some will be able to buy today with a standard real estate transaction.
Some will be candidates for a rent-to-own option and close on their new home within a year or less.
Others will rent for a longer period, but by staying in touch with their agent, can convert to buy or rent-to-own when appropriate.
Some will never make it because their credit issues come from never paying bills on time. A bad habit that will cost them dearly.
Which category fits you? It costs almost nothing to find out and determine how best to attain your goal. The reward is a home of your own.
The Forge Team is an active real estate group in Tustin California and the Orange County area. Headed by Bruce Forge, with over 40 years of real estate sales and lending experience. Bruce formerly owned a Realty World franchise and an ERA franchise when faxing blurry black and white photos was state of the art. Now, with Internet services, one can find homes, tour homes, and search for homes in full color. Some in motion video. The Rent-to-Own concepts in this article are in daily practice through a national network of real estate, mortgage, and credit specialists. Find out now how this service can work for you. http://www.bruceforge.com
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