ON THE MOVE

THIS MONTH:

Brokers Jeff & Heather Buchanan Answer Your Real Estate Questions

HOW TO BUY A HOME  th Less Than Perfect Credit

If your credit score is less than ideal and is preventing you from buying a home, don’t give up. There are some things you can do to get approved for a home loan even if your fi nances have hit some bumps in the road. We spoke with Tyler McCaffety, a mortgage lender with K&G Capital Mortgage with offi ces in Lufkin, Huntsville, Conroe, and Houston. He says there are often a few simple things you can do that can make the difference between throwing your money away on rent or becoming a homeowner.

1. Check Your Credit Report You want to take a detailed look at everything on the report and make sure there are no mistakes. Tyler says creditors sometimes fail to mark the account paid even when you have paid it in full. He also says that oftentimes medical bills end up on a report that his clients never even knew existed. This is because medical procedures usually result in multiple bills from various practitioners, and it’s not uncommon for one or more of those bills to be sent to the wrong address and then go to collections when they remain unpaid.

2. Obtain a Deletion Letter If you discover a mistake or a debt for which you never received a bill on your credit report, you want to take steps to get those taken off as soon as possible. Tyler says that the best way to achieve that is to contact the creditor and ask for proof that the invoices were sent to you. If they cannot prove they sent you the bill or that you received it, Tyler says the fair credit laws require them to remove that debt from your record. He says when you call the creditor, you want to ask for a “Letter of Deletion,” which literally deletes it from your credit report. But beware—Tyler warns that creditors will often offer to add “Paid In Full” on the account, but that doesn’t help your credit score. He says you want to be insistent that they give you a letter of deletion so that it will vanish from your report and boost your score.

3. Improve Credit Management Another common and easily fi xed issue Tyler sees is the mismanagement of credit. He says that many people don’t realize that carrying a balance of 50% or more of your credit limit lowers your score. He also says it’s important to know what day the creditor checks your balance—which is usually NOT the date your bill is due. For the highest credit score boost, you want to make sure your balance is between 1-10% of your credit limit on the day it is checked each month. Your credit score could rise dramatically with that one change.

4. Chart A Long Term Plan If the issues with your credit are more involved than a mistake or paying a different amount on a different day, Tyler says you need a long term plan of action. He often works with clients to chart out a course that will lead them to mortgage approval. He says he is able to advise them on a case by case basis on exactly what to do to repair their credit enough to get approved for a home loan. He meets with them and checks their progress by pulling their credit report every 4 months to verify that their score is improving. He emphasizes that during any credit repair (and when you apply for a mortgage) you should never make any big purchases or apply for other credit. This could greatly jeopardize your ability to get approved for a home loan.

Tyler’s mission is to help as many people as possible achieve the American Dream of homeownership. If you need help qualifying for a loan, Tyler would be glad to help you and can be reached at (936) 661- 7618.

If you are already poised to buy or are looking to sell your property, call Buchanan Realty. Our REALTORS ® are the best in the business, and they would welcome the opportunity to work hard to help you get ON THE MOVE!

Thanks to this month’s expert!

(936) 661-7618 Tyler McCaffety NMLS #858598 RMLO

Jeff & Heather Buchanan are both real estate brokers with Buchanan Realty, LLC, and have offi ces in Lufkin and at the Lake. Jeff has a background in real estate appraisal, which gives him a distinct advantage when it comes to pricing and valuating properties for his clients. Heather is also a state licensed attorney, which gives her unique insight into the intricacies of the legal documents that accompany real estate transactions. They work tirelessly to help their clients achieve their real estate goals, and base their business upon biblical principles. Call them at the Lufkin offi ce (936) 632-7700 or by cell (936) 240-1700 today! 10

Email your real estate questions to: jeff@lufkinproperties.com or heather@buchananrealtyteam.com