A Stress-Free Loan Process

A selected, short excerpt from Chapter 15 of The Secrets About Good Credit and Debt Reduction

Financing the American dream of homeownership can be a joyous, stressful, frustrating, or disappointing experience. Yet billions of dollars change hands every day financing the purchase of homes. Everywhere you look, homeownership is encouraged -- real estate advertising, home improvement shows, do-it-yourself projects, and the lenders that want to lend you money. Homeownership drives our economy, and credit history is the major component of this business. Your credit history will determine whether your financing experience will be joyous, frustrating, or disastrous.

Lenders must determine what level of risk your credit history represents before a decision can be made. Lenders look very favorably on applicants who are paying their debts as agreed now and in the past. Applicants who have had difficulties will require more attention to determine the reason for the poor credit history. If there are valid extenuating circumstances (loss of income, illness, divorce, death, and so forth), the applicant can still receive favorable consideration.

If you have not established a credit history, you will need to do so. Some alternative sources of credit are rent, telephone, gas, electric, cable television and insurance payments. If you can provide documentation to show a good payment history to at least three or four of these accounts for one year, you will be given favorable consideration. If you can't establish an alternative credit history,considerationn become less favorable. Today it is not necessary to have traditional credit such as credit cards, loans and so forth in your credit history in order to successfully obtain financing to purchase a home. The fact that you were able to establish a credit history with alternative credit sources when buying a house sometimes makes it easier to buy a house that to obtain a credit card. With homeownership and good mortgage payment history it will be much easier to obtain a credit card.

Chapter 15 contains additional information about qualifying for a home loan, how to work with the lender if your credit report has red flags, and tips for how you can make the loan process smooth sailing. Order your copy of The Secrets to Good Credit and Debt Reduction: A Consumer Self Help Guide today!

The author, D.J. Williams, also writes and publishes a free, bimonthly newsletter full of tips, news and other information about consumer credit and money management.
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