If you’ve read any of my previous blogs you know that I get a lot of inspiration from my clients and the everyday task that I tackle. The experiences and conversations I have motivate me to educate others who may be facing similar situations and this is exactly what this blog is about. It is an inside look at the exact response I gave to a potential client who wants to buy a home within the next year.
Our consultation was brief, she simply wanted to the exact steps she needs to take now that will make her a homeowner by next year. I asked her a few clarifying questions to get an understanding of her current status and we summed it up that her credit score needed a great boost to qualify for a mortgage loan. Just in case you or someone you know has a similar situation this is the email I sent her:
These are the steps you need to take to purchase a home within the next year. From what you told me it seems like the only thing holding you back is your credit report and score, easy feat! The first step would be eliminating debt and restoring credit, this is how you accomplish it:
1.) You can pay a professional or submit disputes yourself through www.creditkarma.com for the items that shouldn’t be on your credit.
2.) If there are items on your credit that should be there you can try to dispute it but most likely it will not come off. If the dispute is unsuccessful, you can contact each creditor and negotiate a settlement plan. This will give you a lower amount to pay and remove the debt from your credit.
3.) Although you are removing items from your credit you need something positive reporting to your credit to rebuild the score. Go to your bank and get a secured credit card. You will have to pay a deposit for the card $150-$300 is a good amount to start with. Whatever you put on the deposit is the amount that you will have as your credit card limit. Pay balance on time each month!!
If you do these steps within the next week or two you will have 640 credit score within 5-6 months. With 640 you can qualify for a loan and down payment assistance.
Besides a 640 credit score you will also need to present the following documents to the lender for a strong pre-approval:
-2 years of W2s
-2 years of income tax returns
-3 months of bank statements (with no overdrafts)
-2 most recent pay stubs
Once you are pre-approved, then we can start shopping for homes and I will help you throughout the process from contract until you get the keys to your new home!
This is an example of the details I provide during a consultation. My clarifying questions help me customize your consultation with the proper guidance to make you a homeowner. If you are interested in a free buyer or sellers consultation please email me directly at firstname.lastname@example.org. Thanks for reading!