Ask an Advocate

First steps

Q. David in Nashville asks: “My wife and I are thinking about buying our first home. What should our first step be?”
 
A. Great question, David. Before you start shopping for your new home, your first step should be to check your credit report and make sure that it is in the best shape possible. You want to make sure there are no errors, or items that might bring down your credit score.
 
The higher your credit score, the better your interest rate will be on your mortgage. Just raising your credit score 20 points may save you thousands of dollars over the course of a 30 year mortgage. That’s why the DoctorCredit USA free credit report and consultation would be a great way to start your home buying process. Let our experts look over your credit reports and give you the advice you need to get the best deal possible on your new home.

Posted by Edward Carlton on 12/14 at 12:24 PM
File under: Ask an Advocate

Mortgage questions

Q. Jason in Tulsa asks: “I will be purchasing a new home very soon. Should I stay with a traditional fixed rate mortgage, or go with a specialty mortgage?”
 
A. Jason, specialty mortgages can pose a greater risk that you won’t be able to afford the mortgage payment in the future, compared to a traditional fixed rate mortgage. Some, like ARM Mortgages, Interest Only Mortgages, and Negative Amortization Mortgages may have monthly payment increases up to 50% after the introductory period ends, and may have pre-payment penalties so you cannot refinance the loan.
 
Make sure you know exactly what is going to happen to your homes equity and payments in the future before you sign any mortgage paperwork. A good mortgage professional will be willing to answer all your questions about what is best for you and your family. If you are not satisfied with the answers you are getting from your current lender find someone else to work with.

Posted by Edward Carlton on 12/10 at 05:28 PM
File under: Ask an Advocate

How much can I afford?

Q. Pat in Jacksonville asks: “I would like to buy a home, but how do I determine how much I can afford?”
 
A. Pat, that is a very important question. What you can afford depends on many variables: your income, credit rating, current monthly expenses, what you will have available for a down payment, and the interest rate on your loan.
 
I recommend using a mortgage calculator to help you make these calculations. You can find one at Fannie Mae. Look for the section “For Home Buyers & Homeowners”, and then look for “Mortgage Calculators”. You just need to put in your personal information and the calculators will do the math for you. Also, a trusted Real Estate or Mortgage Professional will be glad to help you as well (visit or call your local DoctorCredit USA office for a referral).
 
Remember, your interest rate is influenced by your credit score, so the higher your score the less you will pay for your mortgage over the course of the loan.

Posted by Edward Carlton on 12/05 at 10:14 AM
File under: Ask an Advocate

Raising credit score

Q. Cory in Detroit asks: “How much will credit optimization raise my credit score?”
 
A. Cory, each individual case will be different, and unfortunately it is almost impossible to give anyone an exact answer. The three credit bureaus each use a different scoring model and may not have all the same information, so your scores at each bureau are never the same.
 
Through our experience we know that when negative incorrect credit items are removed your score will rebound in a positive way. DoctorCredit USA has many different strategies to help our clients raise their credit scores, and each one will receive a specialized plan created just for their situation. We have had past clients that just needed a 20 point bump, to clients that have had their scores raised well over 100 points; again, each case will be different.

Posted by Edward Carlton on 11/27 at 12:26 PM
File under: Ask an Advocate

How long does it take?

Q. Tony in Coral Gables asks: “How long does it take to see results when using one of your credit optimization plans?”
 
A. Tony, while it typically takes us 4 to 6 months to work the credit files for the majority of our clients, most will start to see results in the first 45 to 60 days. This is when you will get the results from our first round of investigations with the Credit Bureaus. Remember that the Federal Fair Credit Reporting Act (FCRA) gives the Credit Bureaus 30 days to respond to our investigations. Timing is an essential part of credit optimization so we ask that our clients be patient during the process.

Posted by Edward Carlton on 11/13 at 09:09 AM
File under: Ask an Advocate

Buying a new home

Q. Art in Kansas City writes: “The real estate market has changed a lot over the last couple of months. How will this affect my plans to by a new home this year”?
 
A. Art, this is one of those good news and bad news questions. In most areas around the United States the housing market is going through a correction phase. This may mean lower prices and motivated sellers which is great for the buyers. The bad news is that because of so many loan defaults (foreclosures) in the last year, mortgage lenders and banks have stiffened their requirements to acquire a home mortgage. You will need a higher credit score than in the past, as well as possibly requiring some money down, better documentation of income, and proving you have some cash reserves. That means planning ahead for your home purchase becomes even more important.
 
By checking your credit reports for potential problems, developing a savings plan, and getting all your financial paperwork organized, you will be in a much better position to acquire your dream home.

Posted by Edward Carlton on 10/18 at 12:06 PM
File under: Ask an Advocate

Credit reports and credit scores

Q. Anna in Seattle asks: “Does the credit report you generate for me hurt my credit score”?
 
A. No, Anna. Our objective is to help you improve your credit rather than harm it, so we use a consumer credit report that will be considered a “soft inquiry” which will not affect your credit score. There are many sources to get credit reports and your DoctorCredit USA representative knows how to obtain reports for our free consultation that will not affect you in a negative way.

Posted by Edward Carlton on 10/04 at 02:03 PM
File under: Ask an Advocate

Getting turned down for credit

Q. Mary in Asheville asks: “I am trying to rebuild my credit but I keep getting turned down when I apply for new credit. What can I do?”
 
A. Mary, we know how frustrating that can be. You want new credit but you can’t get approved, and you can’t rebuild without new credit.
 
When starting to build a positive credit history, it is best to think small. By opening small credit accounts or loans—and handling them properly—your creditors will gain confidence in you and will begin to give you larger accounts. Each account you handle in the right way is a step in building a strong credit rating.
 
If your credit scores are to low for you to be approved for new unsecured lines of credit you are going to have to start with secured lines. The best way to start is to contact your Bank or Credit Union. Inquire about opening a secured credit card account or secured installment loan. After you handle these accounts responsibly for 6 months to a year, most lenders will start approving you for unsecured accounts.
 
It is very important to make sure your lender is reporting these positive new accounts to the credit bureaus so you are rebuilding your new and improved credit history. Make sure you are not making frivolous inquires for credit as those will hurt you’re credit rating as well. Your DoctorCredit USA representative will be able to assist you in rebuilding a strong credit rating for the future.

Posted by Edward Carlton on 09/30 at 12:48 PM
File under: Ask an Advocate

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