Planning on buying a home? Find out the top 3 credit mistakes that new home buyers make and how to avoid them.
About the Author: Matt Lavinder is the founder of New Again Houses, which develops several properties every month and sells many of them through its unique Bridge to Own Program.
Top 3 Mortgage Application Mistakes
With our Bridge to Own program, we help solve the problems keeping people from getting mortgages for our remodeled homes. Every story is unique, but we see a lot of the same problems. What are the top three mistakes people make?
1. Having no credit cards.
A lot of people stay away from credit cards out of principle. The credit bureaus want to see that you have access to money and choose not to use it. Establish a history with two credit cards and keep a very small balance. Can’t get approved for a credit card or just don’t trust yourself? Get a secured prepaid credit card that reports to all three bureaus.
2. Paying rent with cash.
While it’s not always necessary, having a paper trail of rent paid with checks can really help get you the best mortgage. If you pay with cash or a money order, you won’t get credit for making all those rent payments.
3. Getting car or personal loans before fixing your credit.
Any loan you get with low credit is probably going to be very expensive. The high payments often prevent people from getting qualified for a mortgage.
Our unique Bridge to Own program helps solve these and other problems so you can acquire a low rate, 30 year fixed mortgage from a network of licensed mortgage brokers and banks. Contact us today to learn how we can find a solution for you.