I have been reviewing credit reports for the past 15 years and I have never seen them this bad. They are inundated with very low credit scores from one borrower to another. These credit reports are more colorful than a rainbow. They are a kaleidoscope of collection items, bankruptcies, judgments, 30- 90 day delinquencies; and they are usually several pages long, too.
On very rare occasions, I see credit scores of 720 and above; when I do, I can’t help but blink twice, to make sure I was not transposing the numbers. Yes! It could possibly be 270!
Recently, however; I had a borrower with a credit score of 740+. I instantly called the borrower with cheerful congratulations because she had been doing the right thing all along! She was a scarce commodity nowadays and I just wanted to hug her! Why was I so ecstatic?
The “she” is a 28 year- old woman; a college graduate with stable employment who lives with her parents…..but unlike most young adults who work and live with their parents, (which means they don’t pay the basic necessities of life, ie. rent, food and utilities), this 28 year-old woman had some savings and has not overextended herself with the use of credit cards. Now, she is in a very good position to buy a house!
Unfortunately, many young adults living with their parents choose to use their “unrestricted” funds to buy Jamba juice, Boba, go to the movies, buy video games, buy new clothes, go on vacation with friends; and when they ran out of money, they just charge, charge away. They also seem to have forgotten their student loans that their parents probably co-signed for them. In terms of home ownership, the futures for these young adults look very dim.
But wait! Don’t be too dismayed. There are some really great real estate agents out there that will work with people who have bad credit.
B.Rich Realty has helped clients improve their credit scores on their way to home ownership. We like challenges and we want you! Yes, you with the awful credit score! It may take one to two years to get you ready, but we will be there along the way to provide you with education and guidance. Call us at 714-680-0210.