Fantastic investigation by 60 minutes, thank you. Maybe one day we will have "change" because it is the worst system in the world.
Pay close attention to what they say about the reports being different with that one woman. It's true, you can pull your scores online or on paper from them but when a Lender goes to pull it for a home application - they get different scores and items...SO FRUSTRATING
I know one of the best credit repair companies out there and they work their butts off and do an awesome job.
IF THE LINK WON'T OPEN JUST COPY AND PASTE THIS INTO YOUR BROWSER:
Realtor / New Home Specialist CSP
And check out my husband's company for all of your landscaping, hardscaping, concrete work or stone masonry needs!
Now that you have connected with a licensed professional that you really like and are comfortable with...it's time to get your documents in order - it's application time!!!
So your professional Realto has referred you to a great qualified, competent lender and now you need to fill out the application online or over the phone however they prefer. Some lenders will charge you up front $20-$35 for this and some will not. It does coste them money each time they pull a report but larger offices allow their lender to pull as much credit as they need to and then they will charge you at closing for the fee.
The point of the application is to show them how much income comes in every month and how much goes out in the form of credit card debt, auto loans, student loans...not things like light bills etc... So it will ask for your income and assets, do not lie on this application it is against the law if you do so. Grab your last two tax returns and be as accurate as you can be. Don't worry if you show less income on your taxes, many times the lender can look at the gross amount before deductions because they are aware people find as many deductions as they can to not pay as much but that was in fact income.
Once it is done the lender should get back to you in 1-2 business days and answer yes or not now. If yes it's time for you and your Realtor to desing your wish list and must haves and go house shopping!! If not now, they should (if they are a caring lender) give reasons and tell you what itmes are really hurting you on your credit report. Then if may be time to find a good, affordable and honest Credit Repair Company or try working on it yourself...get some books, google it!
Work at it, this is work that you will appreciate so much once you get those keys, trust me!!
I get asked this all the time, "what is the first step to buy a home?"
Well, in my professional experienced opinion it is not to go to a bank or online lending company to see if you get a loan...nope...it's to research, interview and find a Realtor that you have a long conversation with and feel VERY comfortable with first.
Why? Because an experienced Agent/Realtor can talk with you about your credit picture first and guide you on the right path. Whether that be legitimate honest Credit Repair or the "RIGHT" Lender to suit your situation. Most buyers don't even know the difference between a Mortgage Broker and Mortgage Banker or who is going to actually give your file (situation) the attention you deserve. Did you know a broker can shop your file out to many investors and could harm your score (but in some cases this is a good thing) / and did you know that you can shop for the same type of loan WITHIN 30 days with up to 3 lenders with it only affecting your score once????? A good agent has a pocketbook of several lenders they refer based on each different scenario. Going out there in the online outerspace can hurt you.
Call several agents, email them, see their response time...ask how busy they are and if they have time for you. Ask if they know the area you want to buy, ask if they can help advise you on things to remedy on your credit, ask if they know about grant and down payment programs, ask if they will actually listen to the reason you want to move and the desires you want instead of simply showing you listings within their office so the office benefits twice and likely the dollar does too.If you know nothing, do your homework. Google, research and just find a Realtor you connect with and that you feel will give you the best experience and knowledge...this is NO EASY PROCESS and will entail a roller coaster of emotions...but nothing worth fighting for and obtaining so huge as your largest financial investment is a cakewalk and comes without some work and struggle.
Food for thought out there...
Please fill this out: http://vid.us/dylgq
I have 13 years experience in Real Estate in HOUSTON, I specialize in NEW HOMES and builder reps send me their GREATEST DEALS and discounts on inventory that has just come back available. MOVE IN WITH INSTANT EQUITY!!!!!!!!!!!!1 http://www.har.com/DBaumNewHomes
I BUY OUT YOUR EXISTING LEASE!!!!! I PAY up to $400 for you to go through CREDIT REPAIR if you buy w/ me!! SPECIALIZE IN DISCOUNTED NEW HOMES ALL OVER HOUSTON - BEST 24/7 CUSTOMER SERVICE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
New Home Specialist / Realtor
CALL ME FOR A FREE LIST OF DISCOUNTED HOMES TODAY - 281-705-2698
NEED TO SELL YOUR HOME? SEND ME THE ADDRESS FOR A FREE NO OBLIGATION CMA.
MINIMUM FICO SCORES
Effective for all FHA, VA and USDA Rural Housing loans locked on or after March 30, 2012, all borrowers must have a minimum FICO score of 640.
Also, effective April 1st, FHA upfront MI is increasing from 1% to 1.75%, and the monthly MI will increase from 1.15 to 1.25-1.40% depending on the loan amount. Any collections over $1,000 will now have to be paid.
The good news is beginning June 11, 2012, FHA will lower its Upfront Mortgage Insurance Premium to just .01 percent and reduce its annual premium to .55 percent for certain FHA borrowers. To qualify, borrowers must be current on their existing FHA-insured mortgages which were endorsed on or before May 31, 2009.