By: Dennis Dahlberg
You want that Arizona Home Mortgage
to purchase your dream home, but your credit score is low. Are you looking for a loan for borrowers with bad credit or poor credit
? Your credit score indicates what the industry calls your willingness and ability to pay the debt. It’s a probability ranking score on the probability of you defaulting on an Arizona Home Mortgage
payment obligation in the next 90 days. Some think it is a credit score grade on your payment performance. The lender will examine your overall grade and see if you can pay the debt. If you have a failing credit grade (an F), the lender will assume you will fail again and not pay them back. It’s an overall Grade Point Average on how you passed or failed on prior loan obligations. If you got an F on an Arizona Home Mortgage in the past, your Grade Point Average would go down. Think of it as when you were in school. Every year the school would give you a Grade Point Average for the year’s work. Some people got a very high-Grade Point Average (all A’s) and were the smart kids in school, while others got a few D’s and F’s on their report cards and had a lower Grade Point Average for the year. This school of credit
never ends in your life, and you want to have the highest credit score Grade Point Average possible and keep it up throughout your life. So, how do you get a high credit score Grade Point Average? You do the same thing that you did in school. That is:
1. Take the Test over again and get a better grade. How do you do this? First, you pay back the people you owe money. Those items in the collection or past due need to be paid off and settled. Your past owing mortgage grade is currently an F, but you can make it a C+ if you pay off the debt.
2. Don’t get any more F’s on your work. This means you pay the Mortgages back and on time. You need to take it seriously, make the payments, and don’t be late. Remember when you turned work in late in school, and the teacher deducted points for the work because you were late? It’s the same in the credit school; don’t be late for your work. Also, what grade were you given when you did not turn in the work? You would get an F. This is the same with paying Mortgages. When you DON’T PAY, you get an F, and your overall credit score Grade Point Average goes way down. Pay your Mortgages on time, and the whole will give you the best Grade Point Average.
3. Don’t take on too many classes. If you take a safe load of classes, your workload is more manageable, and you can probably get an A in every class. But if you take on too many courses, you will not be able to get all the work done for all the classes. This is the same in the credit world. Don’t take on too many Mortgages, and keep the balance owed on the Mortgage to around 30% of your available balance. The lender will look at your mortgage (class load) and wonder, are you never going to get the work done? You have maxed out all of your credit cards and want another one? The more Mortgages you take on (sign up for), the higher the chance that you will fail on one of them, and possibly the Mortgage you are now trying to get is the one you will fail on.
4. Get that bad score off your report. Usually, the quickest way to get a lousy grade off your report is to dispute the score (Whine to the teacher). Tell the credit bureaus that it’s not your grade or that the grader who graded the test was wrong, used the wrong pencil, or used the wrong answer sheet to grade your work. If you can get an F off your report card, your overall score and Grade Point Average will go up. This is usually the first thing you can do to get a better Grade Point Average. You do this by disputing the bad items on your credit report for each credit bureau. If they believe you and you are able to get the score off your credit report, your Grade Point Average will go up. If credit bureaus don’t believe you, work on steps 1-3 above.
The good part about the credit score Grade Point Average is it is an Average. It’s calculated over time; time is your friend when calculating
the Grade Point Average. Your overall score is based on the current work and the work you have done in the past, but usually, it’s for the last 3-5 years, and if you have an F on your credit score report card, it will drop off in a few years. So if you keep your grades up, in a couple of years, your credit score Grade Point Average will start to improve, and eventually, you will have all A’s and you can qualify for the Arizona Home Loan With Bad Credit
Equal Housing Opportunity. This is not a Good Faith Estimate and this is not a Guarantee to lend and should not be considered as such. Costs, rates, estimates and terms can only be determined after completion of a full application. Actual payments will vary based on your individual situation and current rates. APR for loans vary from 7.99 – 29.5% and is based on Credit Score, Down Payment, LTV, Income. Mortgage rates could change daily. To get more accurate and personalized results, please call 623 582 4444 to talk to one of our licensed mortgage experts. Terms and conditions of all loan programs are subject to change without notice. Level 4 Funding LLC, 22601 N 19th Ave Suite 112, Phoenix AZ 85027, 623-582-4444 NMLS 1018071 AZMB 0923961 This e-mail is for the exclusive use of the intended recipients, and may contain privileged and confidential information. If you are not an intended recipient, please notify the sender, delete the e-mail from your computer and do not copy or disclose it to anyone else. Your receipt of this message is not intended to waive any applicable privilege. Neither this e-mail nor any attachment’s establish a client relationship, constitute an electronic signature or provide consent to contract electronically, unless expressly so stated by Dennis Dahlberg RI/CEO, Level 4 Funding LLC, in the body of this e-mail or an attachment. To the extent this message includes any tax or legal advice this message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice.
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.