Love and Hate Loans

We all have a love/hate relationship with loans. We love them, because they help us go to college, get a car and afford a house. We hate them because we’re now in debt trying to pay a loan back that we think we’ll never be able to pay. There is also the worry of will I even get this loan, is my credit good enough, what will I do if I don’t get this loan. When it comes down to it loans are incredibly stressful, especially home loans. You fill out all the paperwork, put your life in the hands of someone else and hope and pray and wish that you get pre-approved. Once you get pre-approved you find the house of your dreams and now you’re once again back to hoping, praying and wishing that you’ll get approved and get the money you need to have your perfect little home. Even when you know that your credit score is on point you still have that pit in your stomach. I used to work at a real estate office, and did you know there is such thing as bad credit loan? Sadly, it’s a thing! Here in Michigan there is a very large and popular loan company that pre-approves everyone. You might think, well that’s all fine and dandy – however what happens when you have the pre-approval, find your dream home and go to get that money and they say “I’m sorry you’re not approved”. Hold on a minute, I was pre-approved and now I am not approved at all… what gives? It’s heart breaking for someone who has bad credit, especially when they find something they really want. If you have bad credit you really need to do your research and find a brokerage that is on your side, working for you, looking out for your best interest and trying to help make your dreams a reality. When it comes to qualifying for a home loan, bad credit shouldn’t be what holds you back – you shouldn’t have to wait for it to approve for your life to start. That’s why it is critical for you to do your research and find someone that cares, not just the big company that makes you a number instead of a person here in Michigan that I spoke of earlier. If I can give you any tip about your credit it is to NOT close charge cards that you do not use. I previously did this, I had 27…ugh yes 27 credit cards. I decided that I needed to go for the minimalism approach to things and canceled all but one. Well, this was the worst idea in the history of ideas. My credit score plummeted, quickly. I went from having a perfect score to looking like I had no idea how to use money… at all. It was pathetic, and heart breaking. But it’s a lesson learned and a reason that your credit might be holding you back. Just remember, even if your credit blows, there is a someone somewhere ready to work with you – they may not be able to make your dreams happen at that moment, but they can make something happen.