How I went from zero credit to a mortgage in four weeks!
A tale of a recent client of GoldMine:
It all started from a tiny ad in the local newspaper. A simple 2 floor house, 2600 square feet, on an acre land – all for just $399,000. Living with three kids Ka”h in a 2 bedroom apartment is no picnic. Paying rent so my landlord should pay his mortgage, instead of paying into my own home always bothered me. I always dreamed on my own home, but never took my act together.
Somehow this ad caught my eye.
After dinner, with all kids asleep I discussed it with my husband. My husband Burech Hashem earns well and would be able to pay the mortgage payment for our own house. Our dream sounded closer.
We scheduled a consultation with Moshe, a family friend and professional experienced mortgage broker. He questioned on our financial status, and was happy to learn that my husband earns a wage of close to $90,000 annually. Well, our income would easily make us through our mortgage payment. How about a down payment? My earnings as a girl, combined with our monthly savings dollar for dollar are still locked in our joint savings account. It stands close to $80,000. Besides the fact that my in-laws expressed that they will chip in when we will buy our own house.
Then came the question that almost had us give up. Moshe, the mortgage broker asks us if we have any credit cards. We proudly answered no. We never borrowed and always paid our bills right out of our available money in our bank account.
We started lecturing how bad living on credit is, how my friends fell into financial turmoil by one tiny credit card. We were just so proud how well we managed our finances that we never even considered a credit card. Moishy went on asking my husband if he leases a car or ever financed a car. Again, we proudly answered no. We bought a used car that was within our budget and it BH serves us well the past two years. No need for financing or lease.
Our mortgage broker kindly let us know that with no credit history there is no way we can be approved for a mortgage. We couldn’t believe our ears. What? After being on top of our finances so well, my husband with a stable job contract and still no mortgage? Why? He kindly explained us that the banks need to see some history in credit management. Every mortgage lender likes to see approximately two years of credit history. While the exact time frame may be negotiated under some circumstances, zero history means no mortgage.
We were devastated. We will now need to start building a credit file, and wait two more years watching house prices just going up while continuing to pay our landlords mortgage.
Then we called GoldMine.
Mr. Gold, the CEO and lifetime senior credit advisor cautiously listened to my story. He immediately assured that there is a solution. He first sent me to check on my parents or in-laws if they by chance have a Bank-of-America, Discover or US-Bank credit card in good standing. Again, our dear parents came to help. My mother had a Discover card since the 1990’s that she barely uses, and my father in law had a HAS-Advantage US Bank credit card since 2006.
Mr. Gold had me make sure that the cards were never paid late, and that the utilization was less than 30% recently. My father in law did indeed use it more but had been happy to pay up his bill to help us with our mortgage process.
Upon GoldMine’s advice, my husband filled out an application with Discover joining my mother’s card, and an US Bank application joining his father’s card. Mr. Gold advised on what date this would reflect on our report, depending on closing statement.
Four weeks later, we returned to Moishy and had him pull my husband’s credit. Moishy was hesitant. Why pull an empty report. But he was pleasantly surprised. A credit score of 745 with an average history of 14 years! What a great report!
In just two weeks we closed on our new house.
GoldMines Disclaimer: this should not be confused with authorized users that would not help as quick. Please feel free to call for a free consultation to review more details involved. GoldMine does not take responsibility for any results etc……