Am I A High Risk Borrower?│I Want To Buy, Now!

I Want To Buy, Now!

Are you preparing to purchase a home in the next few months? It seems that when we are not looking, a home just pops up and finds us, at a time when we were not even contemplating making a move. Then, boom!  The rush is on to beat the clock and make an offer before the next person does. With how quick homes are flying off the market, the best thing to do is be as prepared as possible right now, in the event you do find what you are looking for.

Many borrowers hoping to apply for a home loan are unsure of what a lender might need because it is either their first time, or the process was so long ago. Let’s go more in depth here, about what you will need to get to the point that you are ready to purchase!

Here are 4 things you’ll want to start thinking about before you meet with your lender:

  1. Locating your W2, pay stubs and documents to provide proof of income
  2. Decide if someone will be on the loan with you
  3. How much money you may have/can save for a down payment
  4. Your credit scores
This list will start to prepare you for what your lender will want to discuss with you. More often than not, what is going to keep you from moving through the process as quick as you’d like, is if your credit scores are not where they need to be.
Facts on Fico

FICO is grading you on a few key factors:

  • Payment history
  • New credit
  • Types of credit used
  • Length of credit history
  • Amounts owed

 

If you are looking at your credit report and seeing several derogatory accounts, late payments or other items you will want to look at cleaning up your credit before you go in to a lender. In an effort to lessen the pain of a solid “No” next time you meet a lender, and miss out on your dream home, please consider the following points. If you feel you are a high risk borrower, there are a few things you can you do to ensure that you can lower your risk to lenders. The more prepared you are and the more education you have, the more equipped you will be to get approved and improve your buying power!

4 Challenges of a High Risk Borrower

1. Do you have a low Fico?

You can be sure that your lender will be taking a look at your credit report when you are thinking about purchasing a home. This score is a large portion of what they are using to determine your trustworthiness and the likelihood of you defaulting on a loan, based off previous loans, bank accounts, credit card payments, etc. As important as the scores are in this process, do not let this keep you from going in to see a lender.

If your FICO scores are low there are several things you can do to increase your scores on your own. Read more here, or speak to a credit advisor at Credit Law Center so they can look through your report and ensure you are mortgage ready before you find the home of your dreams.

2. What does your employment status look like? 

Your employment status and employment change are two very different things. Should you be changing jobs often, this may be cause for concern. If you are working a full-time job with regular, consistent pay, creditors prefer this. If you do not work on a set schedule with set pay however, or maybe are self-employed (with less than 2 years of verifiable income), a lender may be very hesitant to lend you any money.

 

 

free credit repair consultation

 

3. Are you lacking excess funds?

Although there are several programs in place for borrowers with little to no money down, it is a good idea to save and have some skin in the game for a down payment. Many lenders would prefer to work with someone that has shown financial responsibility and saved and set aside money. A lender may be hesitant if you  do not, and potentially feel like you still may be a risk.

4. Are you avoiding other responsibilities you have?

Late payments impact your credit score the greatest. If a lender sees you have been falling behind on responsibilities you already have, this can be a large red flag during this process. Again, they are considering the likelihood of you to fall behind on the loan, and if you are late on several bills, why would they feel your mortgage would be any different?

If the above apply to you, and you are potentially a high risk borrower, do not let that stop you from pursing a home. As discouraging as things might seem, there is hope for you after some time of getting back on track.

If your credit is not where it should be and your lender has expressed concern, you may look into a few different options within credit repair. If you are in a rush and are pressed for time, Credit Law Center can help you through a quick and affordable process. Each round with Credit Law Center lasts 30-45 days. If you have items on the credit report that have to be removed (collections, tax liens, bankruptcy, etc) allow a credit advisor to walk you through a consultation.

The credit advisors at Credit Law Center will let you know what you can work on, on your end as well as what you may be doing that is keeping you from higher credit scores. With a little help and a guide to walk with you, that new home may be closer than you expected.

 

A Note From The Author: The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington

Do you have questions about your credit report? If you would like to speak with one of our attorneys or credit advisors  and go through a free consultation please give us a call at 1-800-994-3070 we would be happy to help.

 

How to Find Out If You Are Affected By Equifax Hack

Have you been affected by the Equifax hack?

On Thursday, Equifax, one of the three major credit reporting agencies announced that hackers had obtained access to company data potentially impacting approximately 143 million U.S. consumers. After the companies recent investigation, Equifax stated that the unauthorized access occurred from mid-May through July 2017. The cybersecurity incident was discovered on July 29, 2017, in which they immediately took measures to stop the intrusion by engaging with a leading independent cybersecurity firm. The company also reported the incident to law enforcement and will continue to work with the authorities until the investigation completes in the coming weeks.

The information accessed includes names, Social Security numbers, birth dates, addresses and in some instances, drivers license numbers. Equifax also stated credit card numbers of approximately 209,000 U.S. consumers, and personal identifying information for 182,000 consumers involved with credit disputes.

How to tell if you been affected by the hack?

Equifax will not be contacting everyone that may have been affected, but the company will be sending out direct mail notices to consumers whose credit card numbers or dispute information were accessed. Richard F. Smith, Chairman and Chief Executive Officer for Equifax, stated: “We also are focused on consumer protection and have developed a comprehensive portfolio of services to support all U.S. consumers, regardless of whether they were impacted by this incident.” The company has established a dedicated website, www.equifaxsecurity2017.com, to help customers determine if the hack potentially affected them. The site will be available as early as Monday, September 11, and will also offer U.S. consumers to sign up for credit file monitoring and identity theft protection, and the offer will last for one year. TrustedId Premier will handle the monitoring and protection and will include 3-Bureau credit monitoring of Equifax, Experian and Transunion; the ability to lock and unlock Equifax credit reports; identity theft insurance; and internet scanning for Social Security numbers. However, the credit monitoring and identity protection may require you to accept TrusteId’s terms and conditions, including it’s “Attribution” Section.

Equifax has also set up a dedicated call center, 1-866-447-7559, to assist customers seven days a week from 7 a.m. – 1 a.m. Eastern time.

 

Protecting your Identity Theft

Identity theft continues to increase each year, in 2016 victims of identity theft were robbed of $16,000.00. An important factor in protecting yourself from identity theft is regularly checking your credit report and monitoring your account statements. As a consumer, you are allowed a free copy of your credit report once a year from all three credit reporting agencies, Equifax, Experian, and Transunion. You can request your free copy of your credit reports online at www.annualcreditreport.com. If you have noticed unauthorized activity on your credit report or accounts, immediately report the activity to your bank or credit card companies, and then contact law enforcement.

For Additional information on how to protect yourself against identity theft, you may access The Federal Trade Commission’s website.

Manage Your Accounts Better Today With These Easy Steps!

Credit Alerts Worth Setting Up Now

In order to maintain great credit scores, keeping track of all the activity on your accounts is key! Smart phones are attempting to make our lives easier with a multitude of applications. All major banking institutions now have online banking or apps to make life easier on their customers. These apps have the ability to “control” what comes and goes out of your bank. Gone are the days of driving to the bank to make a deposit. You can now take a screenshot and deposit through mobile banking. The possibilities are endless! We’ve made a list of several other ways to get the most out of your banking apps, most of which are free! Here are a few other ways to use those apps:

Maintenance Notifications:

Statement Notification: Many times it feels like the month flies by and bills are  due once again. ‘Payment due’ is now one of the most used alerts on mobile apps. When the payment is due, an alert pops up, reminding you ahead of time when to make a payment and what the balance is. You can set it up to notify you as soon as you would like! While auto pay or auto draft is great, it is still important to double check that the payment was taken on time. For many families with many different bills due at a time, this is a great way to reduce the headache of having to remember one more thing on that laundry list of “to-do’s” for the week.

Payment Received: Having this notification can ensure that the payment successfully went through and will notify  you immediately on your mobile device.  One of the worst things that can happen is  falling late on a credit card or payment.  Many times if something happens with a card on file and the payment is not processed, consumers don’t catch it. This will ensure that you know those payments are made on time and for the correct amount. To set these up, you will want to download the credit card or bank app you use and turn the notifications on for all purchases and payments made.

Balance Notification: This is a great notification to have set up, as it is very important piece of the puzzle for your credit score. A great rule of thumb is to keep the balances below 30%. The best thing for your credit score is two revolving accounts and two installments in order to have a healthy credit profile. The lower the balance, the better the score is! So, if you’ve noticed your credit card keeps creeping out of your wallet, you can set up notifications at a certain balance so overspending is combated. It is almost like an accountability partner and is great if you find yourself overspending often!

 

credit apps

 

Preventative Notifications:

  1. Suspicious activity- Your bank or credit card company will now send a text message to you if you would like if  there is suspicious activity on the account. The message may sound similar to this: Please verify activity on ____ card ending in ___ at this Location. You can then confirm or deny this text.  If you reply deny, a text follows up with a message that you will receive a phone call in the morning to go over the details. Easy enough, right?
  2. Card not present-Purchases made online will notify you with an alert. Online shopping has seen a dramatic spike in identity theft. For this reason, a feature such as this is a great to keep in mind.
  3. Gas-Any purchase made at a convenient store or gas station will alert you, if you wish. Unfortunately not every station requires a pin to make purchases.
  4. International Purchases-This is not a new feature but is great to keep in mind. If you are traveling, always notify your institution of the activity. Some will automatically turn the card off on you in order to protect the cardholder.
  5. Over limit-This notification is set up by the cardholder and notifies them any time a purchase is made over a certain price.

For more information about your credit score, please give Credit Law Center a call at 1-800-994-3070.

A note from the author:The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington

 

Ease and E-Commerce│The Pros & Cons of Online Spending

How Would You Like To Communicate?

We took a recent survey on our Facebook page asking how users would like to be contacted; via phone call or text/email conversation. The results were not surprising! More than 90% of users voted text and emails. There seems to be a wave of change happening in the way our every day consumer takes in information.

Are you watching the news or your news feed for most recent events? Are your daily interactions on a device or a face to face debate?

If you are with the 90% of consumers that would rather communicate with no real human interaction, does this also apply to the way you purchase goods and services now too?

E-Commerce and E-Tail (Not Retail)

Apparently, it does!

The trend continues when you look at companies that are now converting their grocery shopping to an online platform. Their consumers are taking a side that “we are too busy” to go in the store anymore or that they no longer want to deal with lines, people and the inconvenience it adds to their day.
So what did these companies do? They gave consumers what they wanted; convenience.
As a whole, business owners are recognizing they need to shift their focus (and their marketing) to the digital platforms.

The Pros Of The “New Consumer”

Are there some products you are okay with buying online as opposed to others? Science says that for some people, purchasing an unfamiliar product they feel is more comfortable to buy in person. Have you gone to the store to try a new product, only to return it again a few days later? This proves the point that we will continue to buy familiar products over and over again. For those that do quite a bit of shopping online, they most likely stick to the same brands and services they have come to know and trust because they know the likelihood of having to return it is slim. That among the convenience of buying online makes the e-commerce option seem more appealing.

For Businesses, the pros are as follows:

  • Customer Loyalty
  • Brand Recognition
  • Repeat Customers
  • Customer Reviews/Satisfaction

Many of these pros play a very important role in the customer experience! For an online consumer, there is no long lines, and annoying check out attendant, just a basket of items to add and one click to check out. If the user experience is quick, easy and a great product, you better believe they will share it with all their friends (Facebook “friends” too).

The Cons on “Over Consuming”

While there are many reasons why the customer experience and the instant gratification with online shopping seems great, there are a few cons to the way we are making these transactions. While shopping in a store, there are several emotions that play into the purchase or “put back” of an item. Does this seem practical? Do I need it? What is my budget like?

You may feel you are getting great deals or that “time is money” but you may be overspending when it comes down to it. The same way that these businesses have marketed to you to show you that their way is better, are the same tactics they use to market more products and a need for more “stuff” that they have.

 

free credit repair consultation

You may find that you are spending more money due to:

  • High credit card balances (trying to make more payments to pay them off)
  • Cost of shipping products
  • New Products daily in your email/phone that you buy because you “want” them

There is an overwhelming amount of consumers in debt. The fact is, we sometimes we consume to many products and services without even recognizing it. Have you been there before?

Your Finances

If you are finding that you are falling behind on payments, have credit cards climbing in debt and have collection companies calling you daily, you may be in need of help. Credit Law Center is a law firm that specializes in credit repair. There are credit advisors ready to help you cut back and buckle down on your finances again. Whether you are thinking about filing for bankruptcy or are struggling to figure out the best option to pay a creditor back, they want speak with you so you can get back on track. Whether you want to talk via text, email or by phone, they can tailor to your needs.

The first step towards getting somewhere is to decide you’re not going to stay where you are. Take the next step to better credit and a better life.

 

Do you have questions about your credit report? If you would like to speak with one of our attorneys or credit advisors  and complete a free consultation please give us a call at 1-800-994-3070 we would be happy to help.

 

A Note From The Author: The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington

law firm vs credit repair

 

Helping Your Borrowers│A Referral Program For Clients That Don’t Qualify

A Referral Program That Works

As a real estate agent or loan officer, are you finding that many of your potential clients are being turned away due to low FICO scores? What are you doing to help them once they are denied? Credit scores are a vital part of the home buying process. So, what do you do when your client can’t get financed? If you do not have a trusted resource in your toolbox and a great referral program, you should continue reading.

The Referral Process

This is no fly-by-night credit repair program. We are a law firm specializing in credit repair and we only charge our clients for the successful removal of an item from the credit report. At Credit Law Center we onboard anywhere between 600-700 clients a month. We have worked diligently with lenders and real estate agents to ensure we are educating and informing each one about what their clients are going through with poor credit and what they may be able to help them (things like mistakes on the credit reports they see, or as real estate agents, clients that want to buy but cannot) and what the next steps are for their client, whether that be a little credit education or a complete overhaul of the credit report. We also educate their clients about ways they’re impacting their credit scores and what their rights are as a consumer under the FDCPA (Fair Debt Collection Practices Act) and the FCRA (Fair Credit Reporting Act).

Actually, 53% of our business comes from agents and brokers all over, as we currently work in 48 states (excluding Georgia and South Carolina). Our referral program is exceptional and we work very closely with each agent and lender.

Real estate agents and loan officers are missing out on business by turning away borrowers with less than perfect credit scores. While you cannot change the lending process, you can invest in the potential of clients and partner with a referral program that works!  Let Credit Law Center be part of the missing puzzle piece.

Your Piece of the Puzzle

Give your clients the gift of a second chance. Each interaction you have with a borrower that becomes deflated due to not qualifying, you should attempt to turn the conversation around with the hope of “it isn’t a no, it’s just not yet.”

If you are looking at credit scores with a client and you see someone that cannot get qualified due to medical collections, repossessions, bankruptcy, student loans that have fallen behind or are at a 600 and below, those should be clients you send directly over to speak with a credit advisor. Clients in the poor and fair range will appreciate your effort in trying to aid them to get a home loan rather than turning them away and shutting the door on a better future for themselves and possibly their families.

  • Very Good : 740-799
  • Good : 670-739
  • Fair : 580-669
  • Poor : 300-579

As an agent or lender, you may rely on previous client referrals. How much more business could you bring in when you spend a small window of time with someone and refer them to a program to help them? You will soon become a trusted partner to them and to anyone else they may know that has gone through something similar.

The Return on Investment

The benefit to sending a client to Credit Law Center is that it costs you, as a lender or agent, nothing! We understand that building your pipeline and building relationships comes down to the people you refer business and how quickly they get back to you. The referral partners we work with can feel secure in knowing that their clients will only be charged for actual work that is being completed rather than a month to month service fee.

law firm vs credit repair

 

 

free credit repair consultation

The Perks to the Program

As a referral partner with Credit Law Center, you will have a credit advisor appointed to you and your clients. This is your main point of contact and someone you can rely on to send you industry specific education, updates on clients improvements and credit specific questions. We conduct monthly webinars that you can tune into with credit education or industry changes. You can tune into these or receive a copy so you can continue to use it for your office or client education. We believe that credit repair as a whole, has a negative connotation surrounding it. We have over 30,000 satisfied customers whose lives have been changed because someone referred them and they started the program.

Remember:
  • We can work with collections, charge offs, tax liens, judgments, bankruptcies, foreclosures, late payments and issues with some student loans
  • We only charge the clients for the removal of the items we dispute
  • They will become educated in how to improve their credit scores and useful tips on usage and good decisions financially
  • You will be updated on a clients progress
  • Turn around time for clients is quick, as we do not get paid unless we are making progress
  • You can rely on our company and your credit advisor for any industry, credit specific questions

If you run into a client that you have to turn down, you do not have to take any extra time trying to go over their credit report and help them; leave it to us! We are a trusted part of your team and will work alongside you and your clients. We look forward to helping you grow your business and helping changes lives with you.

 

Do you have questions about your credit report? If you would like to speak with one of our attorneys or credit advisors  and complete a free consultation please give us a call at 1-800-994-3070 we would be happy to help.

If you are hoping to dispute and work on your credit report on your own, here is a link that provides you with a few ideas on how to go about DIY Credit Repair.

A Note From The Author: The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington