Credit ratings can be one of the most challenging obstacles to any prospective homeowner. Oftentimes, those who have had to short sell their homes feel that they will not qualify for a mortgage on a new home because of the effect it had on their credit rating. This is absolutely not the case! In fact, with the low market prices and historically low interest rates, there has never been a better time for buying a new home. Amber D. Smith (NMLSR ID: 625545), a mortgage consultant at Wells Fargo, offers some advice to those looking for steps to take in repairing a low credit score in regards to making a new home purchase.
To begin with, there are websites such as http://www.creditkeeper.com that users can utilize to not only obtain a copy of their credit report, but also keep track of it on a monthly basis. These sites will perform credit-tracking services as well as advise users on how to raise their credit score.
Smith also provided several basic tips for improving credit rating “within a short time.” This included:
To aid in building credit, a site Smith recommended for looking at sub prime credit cards was www.creditcards.com. Once there, looking under “bad to no credit” will give visitors several possible options for credit companies that should “approve most clients without secured funds.” Alternatively, they may be able to open a secured credit card account with Wells Fargo or Bank of America.
Once those vital three accounts have been positively maintained and credit begins to improve, another option is to visit www.optoutprescreen.com and choose to remove further solicitation from other credit companies either permanently or for five years. Doing so can also aid the credit score, since this will stop pre-approved credit cards from arriving in the mail.
Ultimately, bad credit does not need to be a roadblock to your future. There are many avenues out and we are more than willing to work with you on finding the right path towards buying a new home. We encourage you to try some of these techniques out and investigate further for more information.