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The Roshek Group's Blog

By The Roshek Group | Agent in Woodland Park, CO

Get That Colorado Home Loan—Even with Poor Credit

You’ve found the Pikes Peak home of your dreams, but you think your credit isn’t good enough to qualify for a mortgage. Not to worry, says the AOL Real Estate website. Even buyers who’ve had foreclosures, bankruptcies, or previous loan rejections can still become loan eligible—by knowing some valuable tips.

It will take work, but you can increase your chances by highlighting your “compensating factors,” i.e. those things that don’t show up as part of your bad credit score. Here are seven things that will put you in the best possible financial light with lenders and improve your chances for that loan.

 

Other Assets – This includes things like a large 401(k) account or other retirement accounts which tell lenders that you have some financial resources if you get into trouble with your mortgage.

Job Stability – Being at a job five years or more can offset a bad credit history. Let the lender know how your income has increased over the years through regular pay raises as well as cost-of-living or annual merit increases. Lenders want to know you can cover any unexpected costs that come along.

Discipline, Consistency, Stability – Show lenders your current savings account or 401(K) balance to prove you’ve kicked your bad credit habits.

Put Down Roots – If you’ve lived in your current Colorado Springs home for three years or more, this shows that you’re connected to the community and will probably stay put for several years. Lenders like permanence.

Big Down Payment – The bigger this is, the faster you’ll be approved. If you don’t have at least ten percent, check into state and local assistance programs for help. Show the lender you can be trusted to figure out your financial problems.

Start Small – Know what you can afford and stay within your limits. Better to own a Colorado home you can afford right now than buy outside your means and lose it down the road, adding to your bad credit woes.

Documentation – Provide lenders with canceled checks for payments made as well as bank statements that prove you’re saving regularly. These offer solid proof that you pay your bills and are being truthful about your credit history.

No one’s credit is perfect. But if yours is of the “really less than perfect” variety, presenting these positive aspects of your financial life can set a lender’s mind at ease and ultimately get you the loan for that great property in Colorado.
 

No matter what your financial situation, we can help find a home for your budget. When you’re ready to buy or sell a home in the Pike’s Peak Area, call The Roshek Group! We are ready to help you with all of your real estate needs.

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