CHARLOTTE – Many people believe that if they do not have credit, then they cannot be extended credit and that is simply not true. As the old saying goes, “no credit is better than bad credit.” That can be abundantly true in mortgages in a couple different instances. In the first instance, if your spouse (or anyone you are purchasing the home with) has a credit score, then the loan will simply be based on the individual that has the credit score and the person with no credit can still use their income to help qualify. In the second instance, if the individual with no credit is looking to purchase on their own, they can do so by showing “alternative tradelines,” like rent, insurance, etc.
Then of course the last option for an individual with no credit is to build credit. Usually, to build credit it would take about 1-2 tradelines, can be as simple as a secure credit card, and then a waiting period of about 45-90 days. As long as balances are kept low and all payments made, then a good reporting score should occur within that time period. All in all, if income is stable and the main obstacle is no credit, many times that is no obstacle at all!
If you are to have any questions with credit (building or fixing), feel free to call/text/email: firstname.lastname@example.org / (704) 430-6138.
I hope this helps!