A poor credit history is a reality for many people, but it can be particularly daunting when it comes to investing in a house. Fortunately, simply because you or yours have experienced bad credit doesn’t mean that you should be penalized in the future. If your spouse has struggled with bad credit in the past but you’re both preparing to move forward and invest in a home, here are some tips for getting it together financially.
Face The Music
Many people who have bad credit are too scared to take a look at their credit report and broach it honestly, but it’s important to come to terms with the problem so that it can be fixed. Instead of ignoring it, get a copy of the credit report and review it for any errors so that you can update these if needed and be aware of the issues impacting your credit score. While there may not be any inaccuracies on the report, knowing what you’re dealing with will give you a point to start from.
Make Your Payments
At some point, most people have missed a credit card or bill payment, but the first step involved in improving your finances and your credit is ensuring your spouse is paying their bills on time. While this won’t require paying the complete balance each month, it’s important to pay the minimum balance before the due date, and stick with it! It may seem like a small step, but over time it will improve credit and say a lot to mortgage lenders!
Work On Improving Credit
Simply by making a few tweeks can improve credit scores quickly. Remove incorrect information first. Next, pay down credit card balances or ask for a credit line increase. Either action improves the credit utilization ratio. Also consider adding your spouse as an authorized credit user to your account. Your good credit history automatically populates to the spouses credit and raises the score.
In Oklahoma, your spouse does not have be be included on the loan
I have done several loans with just one borrower because the other had bad credit. Some government loans allow for a higher debt ratio which lets you qualify for the home you want. You may also have to save up more of a down payment or pay off debt. Many times you get a bigger bang for you buck by paying off debt or refinancing installment debt instead of paying it down on a house. It goes without saying that having good credit for both yourself and your spouse is important in getting approved for a mortgage, but there are options to getting into the home of your dreams. Please contact me or apply online and lets make your home ownership dreams come true.