Gary Walker
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Gary Walker - The Mortgage MagicianCredit Repair * Reverse MortgagesRefinance * PurchaseTRICKS & TIPSTrick 1—Let’s say you really haven’t established much credit as of yet and you would like to obtain financing to buy your first home. The issue is that you are turned down from lenders because of your lack of trade lines (or open accounts showing up on your credit). And creditors are not extending you any credit because of your lack of history. What do you do? Give up! Rent! No way! Just pull a rabbit out of your hat. Here’s how: All you have to do is contact a friend or family member that will add you on an existing credit card that they have had for a few years in good standing. This card will show up on your credit not when you added the card but when your friend or relative first opened the card. Now, not only does it look like you have had the card for a long period of time but this will also boost your Credit Score tremendously, because it wasn’t that you had bad credit. It was just that you didn’t have sufficient credit. Tip - Your friend or relative doesn’t have to worry about you using the card and hurting they’re credit. They never have to give you access to the card and they can take you off of they’re card once the financing is complete. Trick 2—Let’s say you found a house you would like to buy for $140,000, the appraised value is $150,000, and it needs a tad bit of work. You are able to obtain 100% financing (from me of course :) ) and your closing costs are $4,500. The issue is you do not have any money available for the purchase, or repairs, but you love this house. What do you do? Give up! Rent! No way! Just pull a rabbit out of your hat. Here’s how: All you have to do is negotiate with the seller to sell you the property for $150,000 and ask for $4,500 seller assistance toward closing costs. This leaves the seller with $5,500 more than what he was asking for the property. Then, just after the closing, the seller cuts you a check back in the amount of the $5,500. This is done with a contract called a Repair and Redecoration Allowance. Now you have obtained a property with no money out of pocket plus $5,500 for the minor repairs needed. Plus the seller walked away with exactly what he wanted ($140,000) and everyone is happy. Tip — This is an expense due to the sale of the property and the seller does not have to pay any capital gains tax on the $5,500.
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