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Buying a Dayton home with past credit problems
Buying a Dayton or Miami County Ohio home with past credit problems all starts with talking with a REALTOR or lender. This can be exciting, stressful and intimidating. This good news is that you may be closer than you think.
Buying a Dayton or Miami County Ohio home with past credit problems all starts with talking with a REALTOR or lender. This can be exciting, stressful and intimidating. This good news is that you may be closer than you think. The first step is to understand where you credit is today. You may be suprised to realize that you can qualify today. If not, many home buyers can qualify in as little as one year depending on the severity of the credit problems.
Life is full of unexpected twists and turns and it's not always possible to come out without any bumps or bruises. Every day people are faced with late or missed credit card, mortgage or car payments. This can stem from job loss, insury or just simple hardships. The good news is with time and good guidance from a Dayton REALTOR and lender you can be put on a path to get these issues corrected.
Start Re-Building Your Credit
Start by applying for a credit card and maintaining a reponsible use of the account. This can be accomplished by buying something each week like groceries than immediatley paying it off. This will start reporting a good payment history to the credit bueraus. If you don't immediatly qualify for a credit card, sit down and discuss with your bank. Sometimes they can be your best resource with already having an account established with them.
Reviw and Clean Up Your Credit Report
Before applying for a home loan, make sure that you check your credit report from each of the three major credit reporting agencies. Every 12 months, consumers can request a free copy of their credit report from Experian, Equifax and TransUnion. Take advantage of this and if anything is incorrect or found to be inaccurate, filing a dispute with the credit reporting agency can help to get the information corrected before speaking with a lender. It is not uncommon to find issues in your report.
When you apply for a Dayton home loan, the lender will access your credit report for the purpose of determining your creditworthiness. In an effort to ensure that you have the best possible chance at being approved for the loan at the best possible interest rates, making sure that your credit report is accurate is a must.
Save For A Down Payment
Some Dayton homebuyers often qualify for a mortgage with down payments as low as five percent (three and a half percent for FHA loans), but those with past credit problems may be required to shell out a significant amount for a down payment on their new home. A buyer who pays a larger down payment obviously has more vested interest in the home and may, thereby, be less likely to default on a loan. If you have past credit problems, check with your lender about specific down payment requirements and start saving!
Creative Financing Options
If you've exhausted all of your conventional efforts and are still turning up empty, don't give up just yet. Alternative financing is an option that many homebuyers use to purchase a home. Your Dayton or Miami County REALTOR® can provide you with details regarding any lease purchase and/or owner financing properties, which may require no credit check, no bank qualifying, a low down payment and competitive interest rate options.
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About Greg Greenwald: Greg is a Realtor with Prudential One in Troy, Ohio. He's a member of GDREIA (Greater Dayton Real Estate Investors Association)