Is your Credit Score a Problem?
A recent survey from Trans Union reveals a majority of those planning on or considering buying a home in the next 12 to 18 months are unsure about actions that could help improve their credit score. A majority was also unsure about what their credit score directly affects in the home financing process. The national consumer survey found that while nearly three out of four (74 percent) of potential home buyers believe it’s important to check the accuracy of their credit report, only 45 percent or fewer correctly understand that their credit score measures the amount of debt they hold, risk of not repaying back a loan, or the financial resources they have to pay back loans. “As many people across the nation prepare to take advantage of still-low interest rates and look to buy a home, it’s essential they understand their credit score before applying for a home loan,” said Ken Chaplin, senior vice president at TransUnion. Despite the fact that a majority of consumers recognized the importance of a credit score, one in three incorrectly thought increasing their income (33 percent) or closing old accounts (28 percent) before applying for a home loan has the potential to help improve their credit score.Source: NMP
Hard money lending is a good alternative for those with less than perfect credit opposed to traditional bank financing. In fact, hard money lending can offer quick financing with minimal requirements that will, not only, streamline the funding process but get you moving on those much needed home repairs or rehab projects.