Loans By Kathy: Credit History Is Necessary

Credit History Is Necessary

kathy sheehan mortgageThere have been many changes in the underwriting process for a mortgage.  If you want to borrow money, you have to prove you have a satisfactory payment history.  This applies to applications for a mortgage, car loan, or credit cards.

In the mortgage process, the most important is showing on time payments for your housing.  If you rent from an apartment complex, it can be documented with a verification of rent.  If you rent from an individual, you must be able to document that payment history,  Ideally, payment by check is preferably, at minimum would be by money order.  The worst is paying CASH.  In some cases cash is king but not when we need to document a housing payment.

If you have been thinking about a home purchase, make sure you can document your rental payment history. 

 

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Kathy Sheehan Senior Loan Officer

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770.634.4021

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Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988


 

 

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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.

 

Comment balloon 12 commentsKathy Sheehan • April 22 2012 09:10PM

Comments

There are people who say pay yourself first.  I say pay your mortgage or rent payments first!

Posted by Suzanne McLaughlin, Sabinske & Associates, Realtor (Sabinske & Associates, Inc. (Albertville, St. Michael)) about 7 years ago

And with a check please!!!!!!

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 7 years ago

Good point Kathy. Some want to hold their cash and not deposit it into a bank. But in cases where you are buying a home, it can really hurt you.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 7 years ago

John, this seems to happening more frequently and it really does cause more problems.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 7 years ago

Hi Kathy -

Excellent post for all the good people to realize and remember.  Must have documentation this day in time.

Posted by John McCormack, CRS, Honesty, Integrity, Results, Experienced. HIRE Me! (Albuquerque Homes Realty) about 7 years ago

Kathy, you're right...making sure you have a paper trail for everything you do when it comes to money is important when you are thinking about qualifying for a mortgage! :)

Leilani

Posted by Bob & Leilani Souza, Greater Sacramento Area Homes, Land & Investments (Souza Realty 916.408.5500) about 7 years ago

So true Kathy and yet people will make a deal for lower rent if they pay cash.

Posted by Al & Peggy Cunningham, Brokers, Our Family Wants To Help Your Family! (RE/MAX West Realty Inc., Brokerage) about 7 years ago

John, it is critical!

Leilani, not having the paper trail only makes the process more tedious.

Al & Peggy, it only hurts when they try to buy.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 7 years ago

Kathy   a lot of the snags happens with the mortgage process and the credit history is certainly a culprit.

Great reminder.

Posted by Jennifer Fivelsdal, Mid Hudson Valley real estate connection ( JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571) about 7 years ago

Kathy,  I am not so sure about the "Cash is King" theory.  Cash is cash.  Cash does not establish credit ... as you point out. 

Posted by Kathleen Daniels, San Jose Homes for Sale-Probate & Trust Specialist (KD Realty - 408.972.1822) about 7 years ago

Jennifer it happens more often than you would think.

Kathleen, that is exactly the point, paying cash does not establish credit.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 7 years ago

I am getting MORE rent verification forms from residents who want to buy AND rent....keeping current with rent is a MUST and more so now that credit reporting agencies are picking up this information directly from landlords

Posted by Wallace S. Gibson, CPM, LandlordWhisperer (Gibson Management Group, Ltd.) about 7 years ago

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