Need a proven credit repair specialist for tenant-buyers

Hi, folks. I need credit repair specialists who are proven to be effective to help repair the credit of my tenant-buyers so they can get bank financing of their own. Can anyone recommend some? TIA.


Bob

Hi Bob,

Speaking as a Loan Officer, I can tell you that our interests are perfectly aligned. We both need a qualified buyer. In my job, I am routinely forced to turn down loans to people with credit (and other) challenges. With that said, we NEVER refer people to credit repair specialists. We prefer to coach them ourselves and I can tell you that I have successfully coached several people on to home ownership after being declined initially.

The difference? Whereas a credit specialist may advise them to pay off the ones with highest interest rate first with the objective of reducing the overall amount of interest paid, while improving the credit score. And Dave Ramsey may advise them to pay them off in order of smallest to largest in a “debt snowball” with the objective of paying off ALL the debts and never borrowing money again, credit score be damned. We would advise them on the best route to take in order to qualify for a home loan as soon as possible. Clearly we all have completely different objectives.

My suggestion would be to recommend (if not require as a condition of approval) that your tenant-buyers sit down with a loan officer at a mortgage bank to gauge their ability to qualify for a home loan.

And I’ll tell you like I tell my clients: Go ahead and apply for the loan, and allow us to pull your credit and see where you’re at. Worst case scenario is if you can’t qualify for a loan right now, we can at least map out a game plan of action steps that you can take, to get yourself into a position to qualify.

The most important thing to understand Bob, is that there are many different loan products (FHA, VA, Conventional, USDA) and the guidelines for them are all different. You want your TB(s) to get the perspective of a Mortgage Lender who will look at, not only their ability to qualify credit-wise, which includes their credit score, but also the age/ strength of trade lines, seasoning requirements after major credit defaults (BK, short sales, foreclosures, etc…) but also their income, assets, DTI ratio, LTV ratio, etc… And how your clients numbers fit into the various loan products.

The key is having a relationship with a mortgage banker whom is willing to take the time to coach credit challenged people into buyers.

Regards,

RE702