Loans By Kathy: But I have good credit!

But I have good credit!

"But I have good credit" has been said by many prospective clients.  I almost wish I had a nickel for every time I have heard it.  This week there were three clients that made that statement and right now, not one of them will credit qualify for a mortgage.

 

Understanding your finances and credit is critical if you wish to purchase a new home.  To start, DO NOT guess at what your credit score might be.  You are entitled to a copy from each of the credit bureaus every year.  Start with one, find out if everthing that is on the report belongs to you.

These are the most common entries that will drop your score:

  • Do you have any judgements or tax liens against you?  If so, they will need to be paid.
  • Do you have any reposessions?  If there is still a balance, you will have to pay it off.
  • Do you have any open collections?
All of these can potentially drop your credit score deending on the age of the account and the amount owed.
 
Get your financial house in order before looking for your new "digs."

 

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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

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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 15 commentsKathy Sheehan • September 23 2012 04:42PM

Comments

"'Get your financial house in order before looking for your new "digs.""

Great post short and stright to the point, I love your sentence above.

Have A Great Day

Posted by Doris Freeman, Broker/Agent, Realtor, Madison-Gibson-Crockett (RE/MAX REALTY SOURCE) about 6 years ago

Great advice, Kathy.  Without a financial officer like Kathy Sheehan on your side, you might be renting forever!

Posted by Ron Marshall, Birdhouse Builder Extraordinaire (Marshall Enterprises) about 6 years ago

Thanks Doris, after repeating myself three times this week, I guess I just cut to the chase now!

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 6 years ago

These days, even if they have good credit they might not be approved.  

Posted by Catherine Ulrey, Equestrian and Acreage Property Specialist (Keller Williams Capital City) about 6 years ago

Ron, thank you for the lovely compliment.

Catherine, you are right, it is the first piece of the puzzle.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 6 years ago
Many prospective home buyers don't understand the need for a prequalification. Here are three good reasons. It can save unhappy surprises later.
Posted by Margo Currie (Exit 1 Stop Realty) about 6 years ago

I will bookmark this post and share with others. Thanks for the post.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) about 6 years ago

Gita, thank you, that is appreciated.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 6 years ago

Margo, I prefer to be proactive rather than reactive in the pre-qualification process.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 6 years ago

Kathy, I hear people say they think they have good credit but they may have a little this or that, that isn't their fault. Red flags go up when I hear that.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 6 years ago

Debbie, I agree.  It almost always is a red flag.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 6 years ago

That's why I make EVERY prospect take to a lender before showing any homes. We can waste a lot of gas in this business.

Posted by Doug Rogers, Your Alexandria Louisiana Agent (Bayou Properties) about 6 years ago

I don't want my real estate partners to waste their time or money on a buyer that cannot buy.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 6 years ago

Hi Kathy -- definitely a "duh" moment...it seems so obvious and I'm so glad I don't just trust but verify before the home search begins.

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) about 6 years ago

I think we have all heard that one. . . in fact just today someone called me and said "I signed up for internet, didn't realize it and never paid my bill, will that affect my credit?"

UGH!

Posted by Joy Daniels (Joy Daniels Real Estate Group, Ltd.) about 6 years ago

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