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

 

Reconsidering Rent-To-Own│More Risk or More Reward?

Is Rent-To-Own A Sure Thing?

The here and now seems to take the front seat as opposed to decisions that are best for the budget for a lot of families.

“We need more space.”

“Our credit isn’t where it needs to be.”

“What is the quickest way to start building for our future and not funding my landlords retirement?”

Rent-to-own is here. But should it be the move you make?

What Am I Agreeing To?

Rent-to-own contracts can be a little misleading. As with any contract you sign, double check that everything makes sense and is conducive for you and your family in the long run.

Remember when you said you were not wanting to fund your landlords retirement? The typical lease a family signs is a 12 month lease. Anything after that is usually month to month or on extended terms.  With rent-to-own you are saying that you will lease possibly 2-3 years. At the end of those terms, then you have the option to buy it.

Most rent-to-own tenants have decided this option is best for them because they do not have a lump sum for a down payment or cash on hand.

Read further about a few things you may have not been aware of in the rent-to-own agreements.

What They Don’t Tell You

Although you are leasing the home this does not mean that by the end of the lease agreement you will still be approved. Although you did have the first pick on the home, they cannot guarantee that you are getting approved for the loan. This is no fault to the landlord.

If you were having a hard time getting approved for a loan before due to poor credit prior to the lease agreement and didn’t make any effort to work toward better credit, or something happened to your credit in the few years you were in the home, it won’t matter. Unfortunately, you will still be denied.

You will lose the money you put into the home as well.

Prior to signing your rent-to-own lease, you should still meet with a mortgage banker to know what you will need as far as payment, scores, etc. go to close when it comes time for the lease to end and the loan to kick in.

 

free credit repair consultation

The Fine Print

There are many things you need to go into detail with the seller on prior to agreeing to a rent-to-own home. As with a lease, there should be other factors taken into consideration prior to signing on the dotted line.

  1. Are there any liens on the current home?
  2. What will you do if you don’t decide to buy it?
  3. How does the home inspection work?
  4. How much will I buy it for?

Liens On The Home

This is vital! There should be no reason to argue over who owns the title to the home. Speak with someone about all the details, complete research and make sure you have a party involved that knows what they are doing. There are way too many scammers and companies out there that can lie and pull the wool over your eyes and you’re stuck with no where to turn when you thought everything was going to work out just fine.

Taking A Pass

Let’s say you lived in the home for a few years and decide you don’t want to buy it. What then? Double check that the contract has a clear and defined understanding of what will happen if you should choose to not purchase at the end of the lease. The unfortunate part is that the money you did spend is nonrefundable.

Inspection Time

As with any normal inspection, the condition of the home should be documented and photos should be taken off interior and exterior and any major concerns.

Purchase Time

You and the seller will decide on a price up front. With the purchase price being locked in, this does not protect you from the possibility of the home’s value dropping. If that is the case, it will not save you from the price dropping. You will still be held at the price that was decided on at the time of the contract unfortunately.

Not to mention, if the current landlord is not financially sound and possibly loses the home while you are the current tenant you most likely lose the option to purchase and again, the money is gone with the wind.

In Closing

There may be some benefits to your family signing a rent-to-own option but this is one to be weary of when walking through the process. There are home loans out there you can apply for that will work for you, especially if you are a first time home buyer. There are also options out there to not only help you improve your credit scores, but also work with you on smaller down payments and lower scores (although your interest rates will be higher).  If low credit scores are keeping you from improving your living situation, please contact us today for a free credit consultation. We have helped over 30,000 clients improve their scores. Let us get you back on the path toward financial freedom.

Check out Credit Law Center’s infographic on 4 myths of collections reporting on credit reports.
credit collection myths infographic

credit collection myths infographic

 

Saving Money At Closing Time│It Pays To Be Patient

Patience Pays Off

While going through the home buying process, the word patience for most may be a sore subject. Between the pre-approval process, the home search and offer, it can become a stressful time. Not to mention if you get caught in a bidding war or the home you want has issues after inspection. The laundry list of things goes on and just when you thought you had enough…we are asking you to pack on even more patience? Yes!

Pack your patience… and then pack some more!

Ways To Save

With such a large investment and risk, hopefully you are working with a great team that is advising you and leading you in the right direction throughout the home buying process. Just in-case you didn’t know, interest starts accruing the day you close and won’t end until the loan is paid off.

So what are some ways I can save?

Push It Back

Pushing your closing date to later in the month can help you cut down costs. Although this doesn’t mean anything towards savings through the life of the loan, it does help at the initial time, which we will break down later in this post.

If you are moving into a community with HOA fees associated, paying near the end of the month can reduce the amount of upfront cost there are due to the cost usually being prorated.

Interest, again is accruing and if you close early on in the month, you will be paying that accruing interest from the closing date until month end.

Ways You Benefit

We will set the scene for you. You are about to purchase a home where the purchase price is $300,000. You are set to close on June 15 and are ready to go!

Saving on interest may seem insignificant but look at the numbers:

Interest: 5%

Daily Interest ($3,000 x 5%) 1/365 =$41.10/day

Closing date June 15, prepay 15 days interest (15 x $41.10= $616.50)

If you would close on June 29, prepay 2 days of interest (2x $41.10 = $82.20)

 

free credit repair consultation

So What Did This Save?

A savings of about $535 just by changing the closing date. This is more of a cash flow preference than actual true savings.

How about HOA?

HOA Fees/day ($300/30) = $10/day

Closing June 15, you will be paying $150 ($10 x 15 = $150)

Closing June 29, you will be paying $20 ($10 x 2 = $20)

My New Mortgage Payment

With all of this in mind, you are probably also thinking about when your first mortgage payment will be due. Your mortgage is paid in arrears. If you had been paying as a tenant, you were paying in advanced, for the upcoming month. Whereas your mortgage payment is made toward the end of the month.

The home you closed on at the end of June in order to save money, means your first payment wouldn’t be due until the end of August.

Be Prepared

Although these ideas may save you money at the beginning, it is very important to know financially what is going to be right for you. Whether you are leaving a rental property, or selling a previous home, talk with your trusted lenders about the options you may have and how each one will play out. As a buyer, remember that you do have the power to negotiate and make sure everything pans out in a way that will set you or your family up for success.

 

 

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.

 

Check out Credit Law Center’s info-graphic on 4 myths of collections reporting on credit reports.
credit collection myths infographic

credit collection myths infographic

 

Do you prefer brick and mortar or online lending?

Brick and Mortar vs. Online Lending-What do you prefer?

Buying a home is one of the biggest decisions a person can make—and in all reality, there is no easy button. Finding the right home is a daunting task! Whether you are in the process of buying currently or have purchased a home in the past, the mountain of paperwork may still be haunting you.
So what is the new trend in the home buying process?

Online applications!
As of 2016, the online lending community made a surge! It makes sense, as somehow our lives are becoming more and more busy with work, kids, etc.
Supposedly the shift in trends directly correlates to the smart phone savvy millennial home-buyers. As a millennial myself, I feel everything is based off of accessibility, but I still want the personal touch when I look into buying the largest physical asset/debt I take on. Maybe I am in the minority here? As we continue to see a shift in the way social media and marketing evolves it is pertinent to appeal to the masses, but is the mortgage process one that you want to make via an online lending company or a brick and mortar lender?

Let’s discuss a little further here.

Brick and Mortar:

The phrase, if it isn’t broke, don’t fix it comes to mind. Remember all that paperwork mentioned before? This is where it comes into play now. Apparently, the mounds of paperwork is just too much. It makes sense! You have to bring W2’s, pay stubs, bank statements, tax returns and profit loss statements in to the lender. The same goes for your spouse or co-borrower that is on the loan as well. But on the flip side of that, you have someone to walk you through the entire process and someone you can rely on for questions and feedback. Person to person interaction is irreplaceable and because everything is now online,  I am even more interested in more of the face to face human interaction.

 

Online:

Online mortgage lenders typically are licensed in several states. This is very appealing! Most of these companies are not affiliated with a bank or are non-bank lending institutions. In turn, they aren’t held to the same federal oversight that a bank is so the process can be sped up, another appealing aspect!

Online lenders reduce that timely documentation headache discussed previously. It would seem with the online lending process, the turn around closing time is quicker too. As with brick and mortar mortgages, online lenders also have varying fee structures. Shop around and compare rate quotes when you are working with online lending. Remember, cheaper is not always better.

All in all, the consumer wins! Online lending has made the process quick and easy for the consumer, and brick and mortar companies are allowing for a good mix of face to face and easy access online for their borrowers as well. As always, it is up to the consumer on their own preference of how this transaction works out. What would you prefer?

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

Becoming Mortgage Ready-Credit Law Center

At Credit Law Center we work with several different Mortgage Companies across the globe and want to continue educating our consumers that may be thinking about buying or that may be in the process currently. Some clients that we work with are also currently working with lenders to get approved for a loan. Combining what we know about credit, and what our lenders tell us about the loan process, we have broken down and compiled a short list to keep you informed so you feel comfortable in whatever stage you may be in.

Here is what you have the green light on!

Do:

  • Review your credit report in depth (prior to applying if possible) and look at your credit scores-Credit can impact several things (PMI, Interest Rates, etc)
  • Communicate with your lender-Find a lender that works for you and is available for you and communicates with you throughout the process.
  • Decide what the best “type” of loan will be for you-Ask questions and listen to all options out there.

Do Not:

  • No large deposits
  • No unnecessary job changes-These can have an impact on your qualification and the way your income is calculated
  • No large purchases-Do not go buy new furniture for the new house you are pining over just yet!
  • Don’t pay off a collection during the loan process-This can negatively impact you and potentially drop your credit scores and lower the chances of you getting approved!