Illinois Mortgage With Bad Credit Lending Guidelines


Illinois Mortgage With Bad Credit Lending Guidelines

This BLOG On Illinois Mortgage With Bad Credit Lending Guidelines Was UPDATED On December 5th, 2018

There are several simple tips that everyone should be aware of in maintaining the best possible credit score.

  • Consumers with zero balance credit cards, always have a balance of at least $10 dollars for maximum credit score
  • Having a minor balance like $10 dollars will increase scores
  • Do not max out credit cards
  • Maxed out credit cards will plummet credit scores
  • It is always good to have large available credit on credit cards
  • Try to keep balances below the 10% level
  • Lower credit balances are best for credit scores
  • However, zero balances will hurt scores
  • Following these tips will help qualify for an Illinois Mortgage With Bad Credit

Add Secured Credit Cards to Boost Credit Scores

Always try to have 3 credit cards with available credit balances:

  • Borrowers with one credit card should get two more credit cards
  • Consumers with bad credit and are unsure that they qualify for unsecured cards, then get two secured credit cards with at least a $500 credit limit
  • With new credit cards, always keep  credit balances low but yet avoid having a zero balance
  • Keep a $10 dollar credit balance on credit card every month

Re-Establishing Credit To To Qualify For Illinois Mortgage With Bad Credit

Do not apply for credit all at once.

  • As an example, applying for ten credit cards all at once will not just drop credit scores due to multiple credit inquiries but will alert creditors of potential fraud:
    • Multiple credit applications at the same time shows signs of desperation for credit
  • When applying for credit cards, the credit card company runs a hard pull credit report
  • Hard pulls with temporary drops consumer credit scores and is consider negative
  • It is okay to apply for a credit card from time to time
  • But not too often
  • This is because a hard pull credit report will lower scores
  • Lenders tend not to view it favorably
  • Lenders and other creditors do not view multiple credit inquiries at the same time favorably

Pay Bills On Time Shows Financial Responsibility

Always pay your bills on time.

  • One 30 day late payment on installment, revolving, mortgage or automobile loan can drop scores by at least 50 points or more
  • Being late on one mortgage or automobile loan payment, borrowers may need to wait have one year of continued timely payments to qualify for a mortgage home loan
  • Lenders normally want to see 12 months timely payments
  • Most Illinois mortgage with bad credit lenders want to see at least 12 consecutive months of timely payment history on all of monthly debt obligations in order to approve a borrower a Illinois mortgage with bad credit

Monitor Credit With Annual Free Credit Report

Remember that every consumer is allowed one free credit report from each of the three major credit bureaus once a year. Consumers can get a copy of their free annual credit report once a year.

  • Take advantage of the annual free credit report and monitor it like you are monitoring checking and savings account
  • Check for errors and accuracy on all credit tradelines
  • Remember that low credit scores cost money not just in higher mortgage interest rates but other expenses such as higher insurance premiums and higher rates on all credit
  • Lower credit scores means higher interest rates on mortgages and auto loans, higher interest rates on credit cards, and higher insurance premiums on auto and health insurance
  • Also keep in mind that credit reporting agencies have a track record of making mistakes in reporting credit and consumers can have errors in consumer credit report

Start Mortgage Qualification Process Today With Direct Lender With No Overlays

Over 75% of our borrowers at Gustan Cho Associates Mortgage Group are folks who could not qualify at other lenders. We are direct lenders with no overlays on government and conventional loans.

  • We also offer non-qm loans where there is no waiting period after bankruptcy and/or housing event
  • Gustan Cho Associates at Loan Cabin Inc. offers bank statement loans for self employed borrowers where no income tax returns are required
  • We only require 12 months bank statement deposits
  • The average of the past 12 months of deposits will be used as borrowers monthly income

Our Typical Borrowers

We cater to all different types of borrowers. The Gustan Cho Team at Loan Cabin Inc. understands that hard working folks can encounter extenuating circumstances where they lose their jobs and get their credit bruised. A large percentage of our borrowers are folks who never thought of getting a home but realize their dream of home ownership become a reality.

Here are our typical borrowers who we help:

  • Prior Bankruptcy and/or Foreclosure
  • Late payments after bankruptcy and/or foreclosure
  • VA and FHA borrowers in an active Chapter 13 Bankruptcy Repayment Plan
  • Recently Chapter 13 Bankruptcy discharged borrowers
  • Folks with late payments in past 12 months
  • Folks who have not met the mandatory waiting period after bankruptcy and/or foreclosure
  • W-2 Income Only borrowers who do not want their income taxes used to qualify for mortgage
  • VA, FHA, USDA, Conventional, NON-QM, Jumbo Mortgage Borrowers

The Gustan Cho Team at Loan Cabin Inc. also offers 5% down payment NON-QM Jumbo Mortgages. Please contact us at 262-716-8151 or text us for faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays.

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