Buying a home always brings up a lot of questions; here are some questions we are asked frequently, with the answers below.
 

1. What should I do if I have had past credit problems?
2. Doesn't bad credit disappear from my credit report after 7 years?
3. Would it be possible to purchase a home even if I've had a car repossessed?
4. When will a payment I make be considered late on my credit report?
5. Can I get a loan if I've had a tax lien charge
6. Will a bankruptcy keep me from purchasing or refinancing a home?
7. I've had credit problems in the past but my husband has perfect credit. Do I have to be on the loan?
8. My grandmother gave me her home and the deed is in my name. Can I refinance it?
9. I don't think I'm going to be able to pay my mortgage this month. What can I do?
10. What should I do to prepare for a home purchase?

1.) What should I do if I have had past credit problems?
  Call us for a free credit consultation. Considering the many programs we offer, you may be ready to purchase a home now. If not, we can help you clean up your credit issues and prepare you for a home purchase in the near future.

2.) Doesn't bad credit disappear from my credit report after 7 years?   Not necessarily -- Due to computerization, most creditors now automatically re-report your delinquent credit just prior to its being dropped from your credit report. Then you have to start the 7 years all over again, so don't count on it.

3.)Would it be possible to purchase a home even if I've had a car repossessed?
Possibly. If the car loan company is willing to work with us, sometimes we can create a new payment plan in order to pay the balance due to them. If you show good faith and make these payments, the loan can be shown on your credit report as reinstated and bad debt being paid as agreed. Certain loan programs will allow you to purchase a home under these circumstances.

4.) When will a payment I make be considered late on my credit report?   On a mortgage payment you will usually be given a 15-day grace period to pay it. If due on the 1st you will have until the 15th to have that payment in or it will be considered delinquent. Check with your mortgage company to be sure about the actual due dates. On installment (car loans) or credit card debt, they will state on your statement when it is due and whether a grace period is given. Call them and inquire if you have any questions.

5.) Can I get a loan if I've had a tax lien charge 
a. Tax liens - If a tax lien is opened it must be paid. If you are purchasing a home it must be paid first. If you are refinancing you can use the equity in your home to pay it off at the closing table.
b. Charge offs and judgements - Eventually you will want to take care of any bad debt you have incurred, as it will keep you from ever getting a conforming interest rate. As long as the charge off is not affecting title, there are loans we can do that will allow them to remain opened. If a charge off has become a judgement it will affect title and must be paid either at closing or prior to closing, depending on the program.
c. Medical collections - They can remain opened on many of our loan programs, but once they become a judgement they must be paid.

6.) Will a bankruptcy keep me from purchasing or refinancing a home?  Each loan program has its own time requirements in terms of how long after the discharge you will be able to purchase a home. We need to know the type of bankruptcy.
Chapter 7 - debt discharge
Chapter 13 - paying off debt w/ payment plan when it was filled and the discharge date in order to tell you which plan you will fit into.
The same is true with a refinance except you may be able to pay off your Chapter 13 using the equity in your home and be done with it.

7.) I've had credit problems in the past but my husband has perfect credit. Do I have to be on the loan?
If we need to use your income to qualify you for the loan - yes. If your husband qualifies for the loan on his own you will go on title (ownership of the property) but do not have to be on the actual loan application to get the loan.

8.) My grandmother gave me her home and the deed is in my name. Can I refinance it?
Yes - definitely - you can use whatever equity is in the home to refurbish the home to live in, pay off debts, clean up bad debt, cash out, whatever you choose to do. The home is considered a gift since it was a relative that gave it to you.

9.) Don't think I'm going to be able to pay my mortgage this month. What can I do?
Call us immediately before the situation becomes critical. There are many options opened to you even if you are already behind on your mortgage. Let us help you -- that is what we're here for.

10.) What should I do to prepare for a home purchase?
The most important factors are as follows:
1. Keep your credit in good standing. If you have credit issues let us help you with them.
2. Pay your rent on time (by check if possible; a cancelled check is the best proof that you paid your rent on time).
3. Save money. Most loan programs will require some money down. Start saving now.