Finding a home for your family is an important step in everyone’s life.  Finding a home for your career is just as important. 

Finding the best option that is most suited to your financial goals is the highest priority at PrimeLending. 

How To Improve Your Credit
Be prepared to discuss any credit problems honestly with a mortgage professional. Responsible mortgage professionals know there can be legitimate reasons for credit problems, such as unemployment, illness, or other financial difficulties.
 

There are four ways to control excess debt:

1.   You can reduce your other expenses if your credit is not in terrible shape, even if it means making hard choices or changing your lifestyle to fit your income. A few of your options are selling a second car, taking equity out of your home, applying for a non-secured signature loan, obtaining a loan from a relative, selling your home and paying off your debts with the proceeds and then renting, cashing out your 401K/retirement benefits or selling family heirlooms, jewelry, etc.

2.   If you call Consumer Credit Counseling Services (CCCS), be sure you understand the process and are working with a reputable company. The mortgage lender would consider your application and use of CCCS to pay off your debts as if you were in a Chapter 13 bankruptcy.

3.   You may want to consider bankruptcy. Claiming Chapter 13 bankruptcy takes longer than Chapter 7, but your credit will end up in a little better standing. Chapter 13 bankruptcy gives you up to 5 years to pay off your debts. The disadvantage is that you're in bankruptcy for up to 5 years plus your credit report shows your bankruptcy for 7 more years after you have finished paying off your debts.

4.    If you are so far in debt that you can never repay it, then the best solution may be a Chapter 7 bankruptcy. A Chapter 7 bankruptcy is the least desirable from a credit standpoint, but you are typically out of bankruptcy in 6 months and you don't have to repay any debt. The disadvantage is that this shows on your credit report for 10 years from the date of filing your bankruptcy. Creditors are starting to tighten their credit requirements, and you may have a tough time getting future financing. 

If you want to improve your bad credit history and your debts are under control now, the most important factor is to make your monthly payments on time. Use pre-addressed envelopes enclosed with your statements to mail your payments and call the company if you don't receive your usual statement. If you carry a balance, send your payment as early as possible because most companies calculate interest on a daily basis.  You’ll pay less interest the sooner they receive your payment.

Avoid procrastinating. It's not the postmark date but the day your payment is received that is key. Be sure to give the post office sufficient time (five business days is a good time frame) to deliver your mail.  Late fees, higher interest, and/or a negative mark on your credit report are all potential results of late payments.

Never send cash. If you don’t have a checking account, open one. When you move, don’t forget to tell your creditors your new address.

To be better organized with payments you are worried about, make a list of your debts and their due dates. If you think you will have trouble meeting the monthly payments, contact your lenders immediately to arrange a payment schedule without reporting the payments as late.

Try to get advice from an expert before you take any major financial actions such as taking money from your retirement account or tapping the cash value of your life insurance policy to pay bills or living expenses. Decisions like these may have serious implications you haven't considered.

While credit cards can be invaluable in a crisis by allowing you to charge items and pay them off over time, they can also be dangerous if you aren't careful and charge more than you can afford. If you do use credit cards, choose those with the lowest interest rates and pay them back as soon as you can to cut your costs.
 

PrimeLending
www.primelending.com
18111 Preston Road, 9th Floor
Dallas, Texas 75252
800-317-7463
info@primelending.com
In accordance with Section 326 of the USA PATRIOT Act of 2000 Prime Lending is required to obtain a copy of the documents used in identifying our new account customers. This notice is being provided to you for adequate notice given under this act.