Home buying opportunities are advantageous for qualified applicants. However, an occasional credit blemish or certain extenuating circumstances might not preclude you from purchasing a home. A Team Barber mortgage professional at Family First Funding can review your current credit status to determine if you are qualified to buy a home.

Understanding the Importance of Your Credit
Credit is generally an extension of agreed upon terms to purchase and use goods that you can pay for at a later date or over a period of time. As you build a history of on time payments to several creditors, you are likely to attract other lenders who are willing to offer various credit arrangements for items that you may want to buy. Consequently, slow payments or late payments are likely to send red flags up for certain financing requests.

Check Your Credit Before Speaking With a Mortgage Lender
Consumers should request a copy of their credit report one or two times per year to ensure that accurate information is shown within the major credit reporting bureaus. Prospective home buyers should certain check their credit before contacting a mortgage lender. Having some idea about the items that are reflected in your credit report will keep you updated on your positive credit attributes and provide details about certain items that require your attention.

A Team Barber mortgage professional can review and discuss items that appear on your existing credit report. However, a tri-merged credit report may be needed to get a more accurate view of your credit rating and your credit score. A lender-requested credit report will reflect the most recently reported data from Equifax, Experian and TransUnion.

Buying a Home With Late Payments or Past Due Payments to Creditors
If past due payments appear on your credit report, you might be able to qualify for a mortgage approval. Some home loan applicants might delay speaking to a mortgage lender if a blemish is displayed on their credit report. When seeking a mortgage loan approval, your recent credit history is most important.

Derogatory items that display late payments or past due payments within the past 24 months could cause some concerns for a home mortgage lender. However, past due payments and certain derogatory items that stem from more than five years ago are likely to have less of an impact if your current credit standing is favorable.

Speak With a Mortgage Lender About Alternative Financing Opportunities
A licensed mortgage lender might have the ideal program for your specific situation. For instance, a mortgage professional may suggest that you pay off certain past due bills to improve your chances of receiving a financing approval. Alternatively, if recent late payments appear on your credit report, you might be encouraged to add a co-borrower with a favorable credit history and a higher credit score to strengthen your loan application.

Team Barber loan professionals have provided guidance for many home loan applicants with credit challenges to buy a home in New Jersey. Contact a member of Team Barber to inquire about qualifying for a home mortgage loan: 732.299.4824 or abarber@fam1fund.com.