Educating Homeowners

//Less Than Perfect Credit?

Less Than Perfect Credit?

At Freedmont Mortgage, we understand that dealing with life’s challenges may lead to falling behind on payments. That’s why we offer special financing programs for customers who may have difficulty qualifying for traditional mortgage loans.

Freedmont Mortgage offers:

  • Flexible qualifying guidelines. Choose from a variety of refinance and purchase options, including fixed and adjustable-rate (ARM) loans.
  • Another chance. Help heal damaged credit by making timely monthly mortgage payments.

Best for people who have:

  • No credit history
  • “Less-than-perfect” credit
  • Previous bankruptcy, foreclosure, or delinquent taxes

Explore a full range of purchase or refinance loans with the help of a Freedmont Mortgage consultant. The first step to gaining control of your finances is as simple as a no-cost, no-obligation consultation. Contact a consultant or call (800) 955-8508 to get your life and credit back on track.

Dealing With Past Credit Problems

If you’re thinking about buying or refinancing a home, it’s important to know how your credit history may affect your mortgage application. Credit history plays an important part in a lender’s decision, so it pays to address any blemishes as early as possible.

Order your credit report.

Your credit report is the primary tool that lenders use to evaluate your creditworthiness, so it’s a good idea to know what it says about you. You may order your credit report directly from Equifax for a fee. Look carefully through the entire report and make sure that all the information is correct and up-to-date.

Address negative entries.

Don’t let inaccurate information hurt your chances of getting a mortgage. If you find outdated or incorrect information, contact the credit agency as soon as possible to clear it up. It’s up to you to be proactive in resolving inaccuracies. You may have to do some probing, but if it means the difference between getting a mortgage and being denied, it will be well worth the trouble.

If the negative entries on your credit report are timely and accurate, you may still be able to mitigate their impact on your mortgage application. Lenders are generally willing to consider extenuating circumstances that may have contributed to missed payments. If you were ill, lost your job, or were otherwise burdened by circumstances beyond your control, let the lender know. Sending a letter to your lender explaining your situation certainly won’t hurt your chances for approval, and may help.

If you do have past claims, follow up with that creditor immediately to work out a payment plan. In addition, make sure you close any old credit lines you’re no longer using, prior to making application.

Establish good credit habits.

Depending on your history, it may take time to reestablish good credit, but with a little planning and a lot of discipline, even the most severe credit problems can be remedied over time. Negative credit report entries usually disappear within seven years, but that doesn’t mean you have to wait that long to get a loan. Even if it doesn’t cancel out previous missteps, initiating a pattern of responsible credit use now can show lenders that you’re moving in the right direction. Limit the amount of new debt that you take on, as new applications for credit can adversely affect your credit rating.

2017-05-08T12:55:43+00:00