#3 You Think You Can’t Make It Happen?






There’s a good chance you’re wrong!  Let’s begin at the beginning. That means we need to examine your Credit, Income and Assets.  These three concepts are often misunderstood.  Rumors and half-truths can discourage even the bravest prospective first-time homebuyer.

The second and third, Income and Assets, are irrevocably connected to the first -- your Credit path and history.   They are pragmatically linked, and they mutually impact each other as what you earn, own and acquire, and how you manage your debts.  

Contrary to popular beliefs, delinquent credit history typically  never goes away!  Items don’t always just drop off your credit record after a certain number of years, and wipe the slate clean.  (Darn!)

Understanding the facts about how Credit and credit reporting works is necessary in order to use a good Credit record to your advantage, improve a flawed one, and fix a bad one.

One of the myths about credit reporting is the assumption that if you pull your own report, that action goes on the report to your disadvantage.  Simply not true.   It’s the difference between a “hard inquiry” and a “soft inquiry.”  The major Credit Reporting Bureaus allow you one free report per year; that’s a soft inquiry.   Someone else requesting a report, for instance, to extend credit to you, constitutes a hard inquiry.

When you decide you want to buy a home, and you know (or discover) problems with your Credit history, your mortgage lender can coach you through that credit jungle.  (And, it is a jungle!)

Each credit service has their own “personality” when it comes to how they manage credit profiles.  If it’s been a long time, or is the first time you are obtaining a report on yourself, old items or unusual items may come as a surprise!  Getting the right help for interpreting credit reports, and finding solutions where needed, can take you from disappointment and discouragement into a plan for success.  Good credit is the leverage to where you want to go.

Wanting to own your own home is fundamental, but if you think you can’t make it happen, and you settle for that mindset, you are making a big mistake.   Before you decide it’s not possible, discuss your dreams with your mortgage professional.  Most of us feel comfortable in the craft, trade, service or profession we know, but sometimes we make incorrect assumptions about things with which we are unfamiliar.

Knowing exactly what constitutes “income” and “assets” is important.   Qualifying for a loan with which to buy a home requires that your income have a traceable, legitimate path.  Where did it come from?    For instance, “mattress money” isn’t real in the context (and requirement) of a mortgage company’s ability to trace it!   What you may consider a wide difference concerning Assets and Income might surprise you when an experienced mortgage lender examines your available resources and, with you, develops their “value” as it relates to purchasing a home.

If you are feeling frustrated by mixed messages from those with whom you have discussed the process of home buying, perhaps it’s time to take a deep breath and a step back.   Your situation is unique, and your personal financial profile is unique.  The experiences, successes or failures of others can certainly be good for insight and for pause; but don’t draw flawed conclusions about your potential based solely on the experience of others.

It’s smarter to connect with a certified mortgage lender, start with an in depth study of your credit and financial profiles and go from there with a positive attitude and a willingness to do the work!

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