Everyone expects that finding and buying the right Charleston,
SC home will take a good deal of attention and energy. After all, it’s as
important a purchase as we ever make. But when you add in the potential that
something on your mortgage application could bring everything to a screeching
halt, that’s one detail that has the potential to trigger what could turn everything
into a truly harrowing experience.
The
average credit score in America is around 688. That might look
like a respectably large number, yet it’s considered mediocre when it comes to mortgages.
And the truth is that most Americans are blissfully unaware of what is going on
with their credit reports most of the time...that is, until they’re presented
with a Charleston mortgage application. Ideally, everybody should take a look
at their report well before they are faced with a mortgage application—but if
you’re one of the majority who hasn’t done so, there is no need to panic. You
may still be able to deal with credit issues that threaten to delay your
otherwise smooth transaction.
The most common issue that Charleston area homebuyers come
up against during the mortgage application process is one or more late payments
that ding the final score. In most cases, these are small amounts that were
likely forgotten and can be quickly cured. Schedule an immediate payment—and be
sure to record the receipt. Once the bank sees that the account has been
brought current, they will most often proceed.
Issues stemming from a stolen identity can be more severe
and may take a bit more time and effort to straighten out. First, let the bank
know that the charges on your report are not yours; then document the entire
process of disputing the charges with the credit bureau and having them removed
from your report. The downside is that this typically takes from 1 - 6 months
to complete. In most cases, your bank will proceed—but will delay closing until
you can furnish proof that the issues have been resolved.
In the event that you have late payments that you cannot
afford to bring current, you may be able to make a settlement with the creditor that the bank will
accept. The Catch-22 is that they will typically want you to pay off the debt completely.
This is when it’s going to be necessary to have a candid discussion with your Charleston
mortgage specialist: once you have made the situation clear, he or she will explain
your best options.
If you haven’t taken a recent look at your credit report,
now is the time to do so. You don’t have to wait until you’re filling out a
mortgage application to benefit from identifying potential credit issues…in
fact, keeping tabs on your score can pay off in every situation where credit comes into play!
Questions? I’m happy
to refer you to one of our great Charleston, SC mortgage brokers even before you
get your house hunt started. Call me!
Interested in selling your Charleston area home? Visit: www.jeffcookrealestate.com
Interested in buying a Charleston area home? Visit: www.discovercharlestonareahomes.com
-Jeff Cook
Jeff Cook Real Estate
Charleston, SC
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