Real Estate Advisor

Got Bad Credit? Ways a Real Estate Advisor Can Work to Help You Pre-Qualify For a Home Loan

One of the top reasons why people do not attempt to buy a home is because they think or know that they have bad credit. So, instead of buying, they spend money on rent. Unfortunately, rent prices are creeping up and in many markets, it costs more to rent than it does to buy. As such, instead of wasting money on rent, now may be the perfect time to begin the process of working with a real estate advisor if you have bad credit to help you prequalify for a home loan. Here are a few of the various steps that a real estate advisor can take to help you overcome your bad credit and get into a home.

Review Your Credit Report

When you are working with a real estate advisor to improve your bad credit and pre-qualify for a home loan, one of the first steps that the advisor will take is pulling your credit report and reviewing it. Some people think that they have bad credit, but the reality of the situation is that their credit is not so bad. Other people may have bad credit, but with a bit of work, they can quickly and easily change the situation. By reviewing your credit report, an advisor can see exactly where your credit stands, help you to see if there are any errors that need to be disputed on your credit report, and put together a plan to help increase your credit score based exactly on your credit challenges.

Offer Up Credit Education

Another way that a real estate advisor can help to improve your bad credit and work towards getting you pre-qualified for a home loan is offering up credit education. There are a lot of misconceptions out there when it comes to credit. A lot of people do not understand what impacts your score in a negative fashion and what impacts your score in a positive manner. By taking the time to offer up credit education, an advisor can help you learn how the financial decisions you are making impact your credit and what changes you can make to change up your credit. Closing old accounts may decrease your score, paying down your debt and increasing your credit utilization rates can increase your score, and opening up new accounts may not always be beneficial. Credit education can help you learn not only how to improve your credit score to help you get into a house, but also how to effectively use your credit and monitor your score in the future, which can help you buy a car or buy another new house.

Begin the Process to Pre-Qualify For a Home Loan

The final step that a real estate advisor can assist with is to begin the process of actually pre-qualifying you for a home loan. Once your credit has improved and you have saved enough for a down payment, an advisor can work with you to find programs, such as loan assistance programs, that may help you with more down payment money or may allow you to pre-qualify for a home loan, even if your credit is not yet perfect. Pre-qualifying for a home loan can be overwhelming if you have never completed the process before, so having a professional who can guide you through providing the needed documents and walk you through filling out the necessary forms is an important element that can improve your overall experience when purchasing a home.

Many people who have bad credit put off their dream of buying a home, and instead, throw money away on rent. With some credit education from a real estate advisor, you can bring your credit up and start the process of working toward pre-qualify for a home loan. This is the first step to helping you buy your own home, ensuring all of your money goes toward the equity in your home, instead of the equity in your landlord's home. Here at WannaHomeLoan.com, we can help you work toward improving your credit and helping you to get pre-qualified for a home loan. Stop letting bad credit hold you back from owning a home and start working toward improving your credit to get into the home that you deserve today. Call us now to find out more.