Everyone expects that finding and buying the right Metairie
home will take a good deal of attention and energy. After all, it’s as
important a purchase as we ever make. But when you add in the potential that
something on your mortgage application could bring everything to a screeching
halt, that’s one detail that has the potential to trigger what could turn everything
into a truly harrowing experience.
The
average credit score in America is around 688. That
might look like a respectably large number, yet it’s considered mediocre when
it comes to mortgages. And the truth is that most Americans are blissfully
unaware of what is going on with their credit reports most of the time...that
is, until they’re presented with a Metairie mortgage
application. Ideally, everybody should take a look at their report well before they
are faced with a mortgage application—but if you’re one of the majority who hasn’t
done so, there is no need to panic. You may still be able to deal with credit
issues that threaten to delay your otherwise smooth transaction.
The most common issue that Metairie homebuyers come up
against during the mortgage application process is one or more late payments that ding the final score.
In most cases, these are small amounts that were likely forgotten and can be
quickly cured. Schedule an immediate payment—and be sure to record the receipt.
Once the bank sees that the account has been brought current, they will most
often proceed.
Issues stemming from a stolen identity can be more severe and may take a bit more time and
effort to straighten out. First, let the bank know that the charges on your
report are not yours; then document the entire process of disputing the charges
with the credit bureau and having them removed from your report. The downside
is that this typically takes from 1 - 6 months to complete. In most cases, your
bank will proceed—but will delay closing until you can furnish proof that the
issues have been resolved.
In the event that you have late payments that you cannot
afford to bring current, you may be able to make a settlement with the creditor that the bank will accept. The
Catch-22 is that they will typically want you to pay off the debt completely. This
is when it’s going to be necessary to have a candid discussion with your Metairie mortgage specialist: once you have made the
situation clear, he or she will explain your best options.
If you haven’t taken a recent look at your credit report,
now is the time to do so. You don’t have to wait until you’re filling out a
mortgage application to benefit from identifying potential credit issues…in
fact, keeping tabs on your score can pay off in every situation where credit comes into play!
Questions? I’m happy
to refer you to one of our great Metairie mortgage brokers even before you get
your house hunt started. Call me!
Terez Harris NOLA Real Estate Group
(504)297-2619
Harris.Terez@gmail.com
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers licensed in the state of Louisiana.
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