Recently, I had the privilege of speaking with Kristin Jamieson of Success Mortgage about ways buyers can purchase property if they don’t have a credit history. There are many people out there who choose not to utilize credit, and it’s important to realize that having no credit is not at all the same thing as having bad credit.
One option Kristin outlined for those who don’t have credit but would like to buy a home is to establish a credit profile using alternative tradelines. In other words, Kristin and her team can evaluate potential buyers based on their payment history for a person’s rent and three other tradelines (like their utility bills, cell phone bills, internet bills, or other recurring expenses).
If the buyer is pursuing a loan program that specifically requires a credit history, however, Kristin and her team can help them find and open a secure credit card. This option will take a little bit of time since you must have at least six months’ worth of credit history to generate a mortgage score, but this is certainly a viable option for those willing to wait to buy. Once a credit score is generated or alternative tradelines are reviewed, lenders can provide buyers with a pre-approval letter right away.
The most important thing is to always document the payments you make and the people or entities to whom you’ve made them. Cash payments made to friends or family members can’t be verified, and therefore can’t be used to help you qualify for a loan.
To get in touch with Kristin or to learn more about the lending options available through Success Mortgage, visit their website: https://www.successmortgagepartners.com/
If you have any other questions or would like more information, feel free to give my team or me a call or send us an email. We look forward to hearing from you soon.