Los Angeles, Ca (PRWEB) January 25, 2013
Purchasing a home with bad credit can present a substantial dilemma for buyers. Whether bad credit refers to a past bankruptcy or black marks against a credit record due to foreclosures, delinquent credit card accounts, or simply a lack of credit altogether, there are options to consider and procedures to follow to make purchasing a home a still-viable option.
These credit issues are very common in today’s real estate market. With the recession and subsequent financial meltdown in the job sectors and housing industry just behind us, viewing less than perfect credit records is not a surprise to lenders or sellers. However, both should be addressed carefully by buyers before making an offer on any property.
By approaching these issues head on, purchasing a home with bad credit is not impossible. The first step however is to be taken seriously by the seller. To do so, a potential buyer with bad credit should visit lenders before making an offer, to be sure that loan qualification is indeed doable.
Red Blue Realty’s professionals recommend starting the buying process by speaking with a loan expert prior to evaluating properties of interest to the buyer. Let a loan expert help in advance with the mortgage process, by evaluating just how substantial a loan a buyer can qualify for, and by guiding and assisting a potential buyer through the process of credit repair. The goal of any lender is to improve the credit score of a potential buyer. This may require some time and effort, but it is by no means impossible. In fact, Red Blue Realty’s experienced team can offer direction to buyers in regard to the credit repair process.
Re-establishing credit after bankruptcy can also be time consuming but achievable. Purchasing a home with bad credit and a bankruptcy is certainly not unheard of, particularly in today’s buying climate. Many current sellers and mortgage lenders know that bankruptcy situations can occur even if the buyer has an excellent job and credit that is currently acceptable. Prospective buyers who have been through a bankruptcy should wait to purchase again until two years from the bankruptcy discharge date. At that point, buyers can then contact lenders, and examine and evaluate their current credit report.
Based on the credit report results, lenders can make suggestions regarding the loan price-range a buyer can qualify for, and look into any past black marks on the buyer’s credit record that could be removed.
Red Blue Realty notes that if a bankruptcy filing involved a home loss, the date to apply for new lending credit may be three years rather than two years. Again, consulting a finance expert is key.
There are ways around this waiting period. Outside the box options include establishing occupancy of a residence prior to closing, with the buyer paying rent until a closing date. Buyers can evaluate these options with lenders, as well as with listing and selling agents and their own real estate professional in order to decide on the best solution.
Purchasing a home with bad credit is indeed doable, and best handled and overcome with the assistance of experts such as Red Blue Realty.
Phone Number: 1-(855) 66-RBREALTY or 1-(855) 667-2732