When you’re starting the process of selling your home, be prepared to see your home in a whole new light.A really, really bright light. That’s because buyers will notice all the great things
Check Credit Long Before Mortgage Application Time
Dated: January 30 2015
Everyone expects that finding and buying the right Vancouver home will take a good deal of attention and energy. After all, it’s as important a purchase as we ever make. But when you add in the potential that something on your mortgage application could bring everything to a screeching halt, that’s one detail that has the potential to trigger what could turn everything into a truly harrowing experience.
The average credit score in America is around 688. That might look like a respectably large number, yet it’s considered mediocre when it comes to mortgages. And the truth is that most Americans are blissfully unaware of what is going on with their credit reports most of the time...that is, until they’re presented with a Vancouver mortgage application. Ideally, everybody should take a look at their report well before they are faced with a mortgage application—but if you’re one of the majority who hasn’t done so, there is no need to panic. You may still be able to deal with credit issues that threaten to delay your otherwise smooth transaction.
The most common issue that Vancouver home buyers come up against during the mortgage application process is one or more late payments that ding the final score. In most cases, these are small amounts that were likely forgotten and can be quickly cured. Schedule an immediate payment—and be sure to record the receipt. Once the bank sees that the account has been brought current, they will most often proceed.
Issues stemming from a stolen identity can be more severe and may take a bit more time and effort to straighten out. First, let the bank know that the charges on your report are not yours; then document the entire process of disputing the charges with the credit bureau and having them removed from your report. The downside is that this typically takes from 1 - 6 months to complete. In most cases, your bank will proceed—but will delay closing until you can furnish proof that the issues have been resolved.
In the event that you have late payments that you cannot afford to bring current, you may be able to make a settlement with the creditor that the bank will accept. The Catch-22 is that they will typically want you to pay off the debt completely. This is when it’s going to be necessary to have a candid discussion with your Vancouver area mortgage specialist: once you have made the situation clear, he or she will explain your best options.
If you haven’t taken a recent look at your credit report, now is the time to do so. You don’t have to wait until you’re filling out a mortgage application to benefit from identifying potential credit issues…in fact, keeping tabs on your score can pay off in every situation where credit comes into play!
Questions? I’m happy to refer you to one of our great Vancouver area mortgage brokers even before you get your house hunt started. Call me!
Born and raised in "sunny" Washington state, AJ's favorite thing about living in Vancouver is that it is an hour and a half from EVERYTHING (beach, mountains, outlet malls, etc). He also loves that Va....
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