Is this the door to your mortgage broker’s office? Or does it feel like it is?
It looks like what a Hufflepuff might expect when trying to sneak into the Gryffindor wing of Hogwarts.
Obtaining a mortgage loan is a tough business, but so worth it, in most cases. When you own your home, yes, it is true that you have to fix the toilets, pay for new screens and fix the cabinet doors when your children use them to swing on. But you also cannot be evicted by a landlord who has decided to sell the property because he’s getting divorced or because his mother died and you’re really her tenant and he was just the property manager.
Of course you have to pay the mortgage or the bank will eventually ask you to leave, but how do you make sure that you have an affordable mortgage payment? One of the easiest things you can do, is to make sure that you have good credit. Good credit, means low interest rates. Low interest rates mean low monthly mortgage payments. That low monthly house payment is what makes keeping your home possible. You don’t want to be house poor, which means you have a house payment so high that you cannot afford new clothes or car repairs.
Times have been tough, your income is finally what it must be to buy the home that you’ve promised yourself and your family. But times were tough and many of your debts went unpaid when you were out of work, or work was slow, or during the divorce or after the car accident. Whatever it was, while we all understand that times were tough, banks don’t. They never did. Yes, you want a home loan, but if your credit is bad, they have to charge you a high interest rate. The idea is to get their money out of you as fast as they can before you eventually default again.
Maybe it won’t happen, but if your credit score says you’re basically a viking and the raiding parties have been slow lately, then they have to base their interest rates on something. They can’t take your word for it, nor mine. The only objective method is to look at what all of your creditors have been saying about you. Sometimes creditors get the information wrong, sometimes it’s negligence, sometimes a sin of omission, sometimes they just don’t care and you’ve been slandered and libeled and your mortgage broker can’t do anything about it. What then?
Good credit isn’t magic, Harry Potter is going to wave his wand and yell, “Experian Patronis!” at your mortgage broker. You have to do something. You could spend a lot of money and hand it off to an attorney and hope that the wheels of justice grind faster for this attorney than they do for every other attorney in existence. Fat chance. And yes, that’s expensive. Or you can take the matter into your own capable hands and get started now.
If possible, rather than working on cleaning up your credit when you start looking for house, start right now. If you’ve already started looking for a house, just get started right now anyway. It just takes some effort on your part. But the effort is easy enough, and affordable if you do it yourself. If you don’t want to, there are people who can do it for you, just do your research and you’ll find one. Or go to Youtube and check out any number of excellent youtuber/educators on the subject.