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Mortgage With Bad Credit
IS 12 MONTHS CANCELED CHECKS REQUIRED TO QUALIFY FOR A MORTGAGE? Is there a faster way of getting rid of the record of debt settlement on your credit report? Is achieving a 700 PLUS FICO credit score possible one year after a bankruptcy discharge?
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Mortgage Prequalification and Canceled Mortgage Payments
Requirement: In most cases, mortgage lenders only call for the 12-month period, which is never required – Such specifics and requirements don’t exist. Don’t get me wrong. They will demand proof of payments on loans, but not limited to.
Still, they may seek documentation that demonstrates payment performance history on debts, which includes, though not limited to:
- Statements from banks.
- Affidavits showing rent was paid.
- Payments made by debtors on debts.
Focus: The core area of concern for lenders is what they call ‘underwriting credit review,’ which consists of the borrower’s credit score, debt-to-income ratio, and repayment history.
Removing Debt Settlement Records
A record of a debt settlement can be removed from a credit report: On average and typical of the average person, a debt settlement will stay on their credit report for an average of 7 years from when it was settled. Unfortunately, there was no fast approach to achieving this.
What to do?
Remove the errors: Where some errors pertain to the debt settlement that you do not think are correct, you can dispute them with the reporting agencies.
Seeking for Credit Removals: Ensure you pay your bills on the correct day and cut down the balances of the credit cards you own while not making them negative by getting another account.
What You Should Know About Achieving a 700+ FICO Score When Will It Be Possible
Estimated Achievement Timeframe: It is possible, with a necessary amount of work, to achieve a 700+ score of FICO one year after the discharge of the bankruptcy case, but it will not be challenging as many factors come into play. Here are some tips that can aid you in improving your score.
685+ FICO: It is very important that all bills are paid on the due date to achieve a perfect payment history, which greatly augments your score among the three danger areas rated.
Credit Utilization: Maintain your credit card balances at less than 30 percent of your available credit.
Build Positive Credit: Use secured credit cards or small installment loans to establish a positive payment record.
Supervise Your Credit: Focus on your credit history and occasionally review your credit report for mistakes.
Although canceled checks are not usually necessary for a mortgage, it is important to maintain consistent payments. Removing a debt settlement from your report may be lengthy; however, keeping a good financial reputation will help elsewhere. Obtaining a FICO score 700 within a year after going bankrupt is quite optimistic. Still, it can be achieved if one is hardworking and responsible with credit.