Buying Home With Bad Credit And Collections In Illinois
This Article Is About Buying Home With Bad Credit And Collections In Illinois
I was having a conversation with a colleague who is a Realtor today. The conversation was about the lending process and what expectations are set at the beginning when a Mortgage Loan Officer engages a client Buying Home With Bad Credit And Collections in Illinois. There’s a list of “Commandments” are needed to be adhered to as it matters to the lending process. It’s a simple list but can really cause some heartache if not, heartburn if something isn’t obeyed.
Advice In Buying Home With Bad Credit And Collections
Here are those ten commandments just so home buyers buying home with bad credit and collections know what they are if or when you engage any bank or brokerage:
- Thou Shalt NOT change jobs, become self-employed, or quit a job until they close on their home loan
- Thou Shalt NOT buy a motorcycle, car, truck, or van. (or you may be living in it!)
- Thou Shalt NOT use credit cards excessively or let current accounts fall behind
- Thou Shalt NOT spend money you have set aside for closing
- Thou Shalt NOT omit debts or liabilities from your mortgage loan application
- Thou Shalt NOT buy expensive furniture or open up zero financing furniture credit accounts
- Thou Shalt NOT originate any inquiries into credit
- Never apply for new credit while in the mortgage application and mortgage approval process.
- Thou Shalt NOT make any large deposits without consulting with mortgage loan officer FIRST!
- Thou Shalt NOT change Bank Accounts or transfer money from one bank account to another bank account
- Thou Shalt NOT co-sign a loan for ANYONE
I should add one more just to be sure we don’t miss it
Thou Shalt NOT Pay off any debt accounts without talking to the mortgage loan originator. Homebuyers can qualify for FHA Loans with bad credit in Illinois. Homebuyers do not have to pay outstanding collection accounts and charge off accounts to qualify. Ok, so if you aren’t clear as to why these are so important, let me give you a word that is most feared in our industry.
Role Of The Mortgage Underwriter
Out of all of the people involved in making a loan go, this one is THE most feared.
- Because it is their job to make sure that borrower and their situation are a “good risk” to lend on
- This means they are the ones looking at the borrower’s credit report and trying to see whether or not they are stable versus erratic with borrowing and spending habits
- Will you always be able to afford the loan you’re about to get?
- Will you be responsible enough to know that when it’s time to pay you are on time?
The above are just two of a myriad of questions that they will be asking. Never mind that they will be asking even more if you’re doing a construction loan or a 203K loan. Then they get really down into it. ALL of it. From estimates to final values they wail want to know EXACTLY what will happen.
They get paid to deny the loans that are the greatest risk. They are also paid to find the best risks that will make the bank or investor pool consistent interest income.
The Three C’s In Mortgage Lending
So for you, the borrower, who needs to show the 3 C’s of Lending;
It is imperative that home buyers adhere to the eleven commandments above. It serves a greater purpose than just getting you a loan, it serves everyone that it will create enough of a win/win situation that the bank will say, “Ok. The lender will lend X amount of dollars.” Make sure to remember them. There’s an image attached, feel free to download it and paste it to the refrigerator if when engaging with a lender. Will want to stay within the parameters.
Advice On Buying Home With Bad Credit And Collections In Illinois
This article on Tips On Buying Home With Bad Credit And Collections was written by Gustan Cho who is a veteran real estate investor and expert in commercial lending. Gustan Cho Associates are direct lenders with no lender overlays.
Gustan Cho Associates Mortgage Group are experts in the following:
- FHA Loans
- FHA 203k Loans
- Reverse Mortgages
- VA Loans
- USDA Loans
- Conventional Loans
- Jumbo Mortgages
- Alternative Lending
- Subprime Loans
- Non-QM Loans
- Bank Statement Mortgage Loan Programs
- No Doc Fix and Flip Loans
- No Doc Investment Property Loans
- Commercial Blanket Lines Of Credit
- Hard Money Loans
- Commercial Loans
- SBA Loans
The team at Gustan Cho Associates Mortgage Group has years of experience in originating, processing, underwriting, funding, and servicing residential, hard money, and commercial loans. We can be reached at 262-716-8151 or text us for a faster response. Or email us at [email protected]