What Home Buyers Just Don’t Understand About Their Credit

What Home Buyers Just Don’t Understand About Their Credit

Many times towards the end of my credit program I ask a client who was the person that referred them to me if I don’t have access to the information right then. Too many times I am told. “I don’t remember so just tell me where I need to go”.

This is a typical response mostly due to the fact customers do not understand the home buying industry. I always tell them most loan officers or realtors if you are not qualified typically toss you aside and don’t bother sending you somewhere for help as you’re not a qualified buyer. I also tell them while I cannot force you to go back to your Real Estate Agent or Loan Officer what you need to understand is unless they work for a major bank the loan officers are commission only as well as the realtors. Which of course means they do not get paid until they sell a home or a loan.

It’s important to know this as each of them go through a lot on the hopes that you can qualify to purchase as a serious buyer.

They cared enough to send you to someone who can and did help you. The right thing to do is what karma says to do. You show that loyalty back to that professional who cared enough to point you in the direction of someone that can help put you in the position of being a home owner. So now you can go back to them as a qualified buyer and you now have someone to refer friends to as you can say with confidence they cared enough to help you when others did not.

About Wayne The Credit Guy:

Wayne Sanford, also known as “Wayne the Credit Guy“, is the owner of New Start Financial Corporation. With nearly a decade of experience working in the credit industry, Sanford has personally reviewed more than 13,000 consumer credit files for mortgage professionals, investment groups and consumers.

Labeled as the “Company with Credentials“, New Start Financial Corporation works with financial professionals and consumers across the country. Sanford and his staff offer “real world” advice and help layout the best course of action consumers need to follow in order for them to achieve their financial goals.

Perfect Credit Score Makes News

There is a difference between good credit and perfect credit. In fact, perfect credit is so rare, it makes news when it happens. Like a Vegas Casino, the credit game is set up with the house winning more than not…contact Wayne the Credit Guy and learn how to make the credit game work for you.

 Less than 2/10ths of 1% of the “scorable” population has a perfect 850 FICO score.


I’ve tried Credit Repair before and company didn’t help

I’ve tried Credit Repair before and company didn’t help…

I hear this all the time from people and I call it “credit repair scar tissue”. But when I ask them what research they did on the company prior to hiring them I always get “the real estate agent” or “loan officer” told me about them. And that’s great but when I ask did they do any checking of the company out on their own the answer is always no. So when I say to them so you didn’t do any research to see if they operate legally or have any credentials that tells you that they are the company that can help you the answer is none and your surprised you didn’t get any results or the results you were hoping for.

One thing I always tell future clients is go check out my website and credentials and do a little reading up on them and then call me and we can discuss your credit file and what your goals are.

In life you need to be proactive and understand that there are many people out there looking to take advantage of others so you need to do a little research. I recently had a husband ask me if they both needed to hire me to help them. I told him “so you’re asking me if you should pay me for two people instead of one?”. After pointing out to him never ask someone you plan on writing a check to as most people will say yes.

What I asked him back was “do you need both of your incomes in order to purchase the house you want?” If the answer is yes then both of you need to hire me, if the answer is no then only the one with the income getting the loan needs to hire me”. Now the funny part of the story is when he told his wife he was going to ask me she said “of course he’s going to say yes, he wants us both to pay him!”.

I made sure to tell him to relay this story to his wife of what my answer was before he told me what his wife said, lol.

Also, many people who are mad at credit repair companies and complain typically find them on the internet and their “sales person” said it’s not a contract and is month to month so you can cancel whenever you want. Another way to phrase it is “we want to keep charging you as long as we can so we will drag this process out since that’s how we make more money”.

And if they are charging you monthly with “no contract” then they will typically tell you to send in all reports received from the credit bureaus and if you do not get all of them in 45 days then you need to call them and tell them that.

How many people do you think actually remember that part? Then they forget, time gets away from them and then before they realize it several months have gone by and when you call to complain they tell you that you were supposed to have contacted them so it’s basically your fault. However they have billed you for several months even though they have not done any work.

How is that monthly fee that was so much cheaper for you working out now?

Most of these companies know nothing about the home or car buying process and typically cause more problems than they can help you. Unfortunately you don’t find out about this until hundreds or thousands of dollars later.

Bottom line, it’s your money so put a little effort in and check out the company before you hire them.

Know your rights when the Debt Collector calls

Know your rights when the Debt Collector calls

Dallas Credit Guru Wayne The Credit Guy Talks About Creditor Phone CallsWhile there are some polite and honest debt collection companies doing their job, just know they are the extreme minority. So let’s have some education about what they can or cannot do as they operate mostly under intimidation, manipulation and fear.

Once your account goes to an outside collection agency the account is usually “charged off” which means 180 days of nonpayment has gone by and federal law requires the debt be written off their books. The coding of this account on your credit report cannot get any worse.

This charge off date is what is measured for the seven years the account can stay on your credit report. So the negative account will stay on your credit file for seven years. The OTHER issue to be very concerned about is the legal statute of limitations. This is the timeline you have for the creditor to file a lawsuit against you which will turn into a judgment and if that happens no bank will lend you money with a judgment against you, even with a 810 credit score.

Each state has their own timeline for how long a creditor can sue you. Most states including Texas and California are four years. But some states like Illinois and West Virginia are ten years (never going to move there!). The best way to confirm the date for your state or to ensure the timelines have not been changed is to go to the Secretary of your state’s website to confirm these dates.

So once you have confirmed this information and a debt collector calls you and threatens to sue you understand it is a civil matter only. The sheriff or constable is not coming to your house to arrest you. And if the debt is old enough so you know they can’t sue you once you tell the debt collector that and that they broke the law by saying that knowing they can’t they typically get off the phone with you rather quickly since they now know you are an informed consumer.

Also… debt collectors buy debt from creditors for pennies on the dollar so NEVER pay more than 50% of the debt if you choose to pay the debt. In the past I have gotten collectors to go down as far as 30% for debts only a few years old.

But UNDERSTAND that if the debt is 5-6 years old and you do pay it make sure in the paperwork you get BEFORE you make any type of payment that it says the debt is settled in full. And the account WILL stay on your credit report for another seven years even though it will show a zero balance. It DOES NOT get removed unless you are able to negotiate that as part of the agreement but most debt collectors will not remove it but it can happen.

You Get What You Pay For Many Times: Watch for the * Near the “Free”

They always say nothing in life is free, credit karma has ads all over TV and the radio saying why pay for your credit score… read the link attached if you have them and ask yourself again how awesome their free product is. And remember, just like everything else in life you never get the whole story so what else do we not know about? Knowledge is power!

Also understand the different types of credit scores that are out there. While they all come from the same source it’s the lenders who put the different values on the information the credit bureaus have.