Applying for a Home Loan with Unresolved Credit Issues

Many borrowers apply for home loans each year knowing they have credit problems.  In most of these cases the consumers were victims of a broken credit system.

Usually one event happens which causes the consumer to go late on some payments.  The credit then becomes damaged, and the credit quality starts progressively getting worse.

Eventually the consumer cannot apply and be approved for new credit due to the resulting credit damage. In this case most borrowers do nothing.  They simply wait for the credit to get better which never happens.

As the negative items sit and fester on the credit report, the credit scores continue to decrease.  With no improvement and no new credit being added, the credit scores will then stay low or go lower through time.

When this happens, the credit quality is so bad that the borrower will quickly be declined for a home loan and most other type of loans they will apply for.

Don’t make this mistake.  Credit does NOT fix itself, and if you have only older negative accounts on your credit you will more than likely be denied a home loan if you apply.

Focus on repairing some of these issues before you apply. The only way to repair these issues is to focus on deleting negative accounts while adding positive accounts in their place.

Following these steps will dramatically improve your credit profile and increase your credit scores so you will qualify.

About the Author

Joseph Horton is currently the President, CEO, and Chief Paralegal at MyCreditRepairSpecialists.com, he specializes in helping consumers establish excellent credit scores and then leverage those scores to access credit and better financial tools to improve their lives and financial futures. Given the scope of Mr. Horton’s legal experience and tenacious advocacy for his clients, he is able to utilize and assert the Federal Fair Credit Reporting Act to remove inaccurate, untimely and unverifiable information from consumer credit reports. Mr. Horton is also the mastermind behind the release of the Netflix and Build credit improvement strategy. For more information on consumer credit scoring, consumer credit, and credit repair, please visit www.MyCreditRepairSpecialists.com

Leave a Comment