MME's Latest Book
In seven simple steps, MME's, Joyce Brown will help you understand the complicated process of repairing your credit without the help of a credit repair company. Further, this easy-to-read guide will inform you how to obtain your credit report, review your credit score, and improve it, while at the same time providing tips on budgeting and spotting inaccuracies within your reports.
Want to learn what else mortgage lenders review for loan approval? Brown reveals four very specific factors about your finances that will give you an advantage. There is no quick fix for credit repair, but the solution is within your grasp! Arming you with insider information and newfound confidence, this detailed guide provides the tools for success and a clear path toward homeownership
One day, a young lady, whom I will call Susie, came into my office, needing help purchasing a home. I reviewed Susie’s credit report. It contained too many outstanding collections. She did not have the funds to pay them off, and she didn’t have enough good payment history to obtain approval for a mortgage loan, which is a loan used to purchase a home. I told her that she could not qualify for a mortgage loan and would not be able to purchase a home. Susie told me that she had paid $3,000 to a credit repair company to help her get approved for a mortgage loan. After the credit repair company took her $3,000, they told her that she did not make enough money to purchase a home because she was employed as a cook at an elementary school cafeteria. Susie told me, “Ms. Brown, all I want is a home with a backyard for my two little boys to play in. It does not have to be anything fancy.”
That made me mad because if she had come to me first, I could have helped her get a mortgage loan approved by a lender who would accept a credit score of at least 500. The lender required all outstanding collections to show a zero balance and three trade lines of alternative credit. (Alternative credit is an account that does not appear on a credit report; examples of alternative credit are monthly payments made for rent, utilities, cell phone, cable, insurance, and other accounts for which the borrower can provide documentation of good payment history.) Susie paid all her monthly utilities and rent on time and did not have any late payments in the past two years. Instead of paying $3,000 to the company, Susie could have used $2,000 to pay off her outstanding collections, and the remaining $1,000 could have paid her up-front closing costs to purchase a home. Susie’s income qualified her for a grant of $10,000 to help pay her down payment and closing costs. Susie could have been a homeowner if she had not paid the credit repair company $3,000.
What Is Credit Repair?
Step 1: Ordering Your Credit Report and Credit Score
Step 2: Completing a Budget and Establishing an Emergency Fund
Step 3: Reviewing Credit Score and Credit Score Reason Statements
Step 4: Improving Your Credit Score
Step 5: Reviewing Your Credit Report
Step 6: Disputing Inaccurate Credit Account Information
Step 7: Pay, Settle or Ignore
Obtaining Mortgage Loan Approval
While You Are Waiting
You Can Do It!