As experienced Flower Mound and DFW real estate agents, we know that many people are not very aware of their credit scores or what factors influence those scores until they go to make a substantial purchase. You know that buying a new home is the biggest investment you will probably ever make, and that it will take energy, focus – and of course a capable realtor. What you may not realize is that when it comes time to fill out the mortgage application, things may come to a screeching halt. By checking out your credit report well in advance, it may help to ensure smooth sailing at application time.
You may not know that the average credit score in our country is about 688 – not too bad, or is it? When it comes to getting a mortgage, that may not be good enough. Once you have learned what your score is, if there are any credit issues that need to be addressed you may be able to prevent the home-buying process from being delayed, depending on the problem.
The mortgage application process can be delayed when your credit report indicates late payments, even small amounts owed to a creditor that can be taken care of quickly. If you owe a small amount that you may have forgotten, make the payment and record the receipt. The bank or lending institution will likely proceed forward immediately once they see that the account is up-to-date.
Identity theft is a bigger issue, and will likely take a bit more effort and time to get ironed out. Inform the bank about the problem, and make them aware that the charges are not yours. Be sure to document all of the details in disputing the fraudulent charges with the credit bureau, and your efforts to have the charges removed from your credit report. This will take time, possibly up to six months. In the majority of cases involving identity theft, the bank will move forward with your mortgage application, but closing may be postponed or delayed until the applicant can provide solid proof that the issues have been addressed and taken care of.
It may be that you can make a settlement with a creditor with whom you cannot afford to bring payments current with which the bank will agree to. The issue in this case is that if the creditor accepts your settlement, it may demand complete payment of the debt. You may want to consult with a mortgage specialist in situations such as this.
Take a good look at your credit report if you haven’t done so in a while and are considering purchasing a new home in the Dallas-Fort Worth metro areas of Flower Mound, Frisco, Denton, Highland Village, or other nearby communities. It could mean the difference between buying a home, and being turned down!
At Team Nelson, our goal is to help potential homeowners find their dream homes and enjoy a seamless, smooth purchasing process. Contact us today for all of your real estate needs!