There are four types of people...

Over the weekend I came to the realization that there are four types of people when it comes to credit. I think it is extremely important to find out who you are in the mix... Here are the four types:
1. People that think they have great credit, and do have great credit.
2. People that think they have great credit, but have bad credit.
3. People that think they have bad credit, and do have bad credit.
4. People that think they have bad credit, but have good credit.
In my experience, people are pretty aware of how they stand with credit, they have been told by people, banks or other, that they are strong, and use credit accordingly. However, there are people who really don't know where they stand. Check out my other blog on FICO scores and how they are formulated.
Credit, what is it, why is it so bad, why is it so great!
The issue with not knowing where you stand, is it puts you in a position to be taken advantage of. Fraud is one of the most horrible things to go through, and knowing where you stand will put you in a better position to question your situation, and make the best of it throughout your financial life. Check out my other blog on Fraud.
Real Estate fraud- How does it happen, why does it happen?
These types of fraud can happen, you must put yourself in the position to educate yourself to avoid the pain that these types of situations can put you through. It starts with credit. Know your score, know your positives and negatives, and don't let someone tell you otherwise. If in doubt about what someone tells you, ask someone else, a friend, or someone in the Real Estate business, for advice.
These questions came to my mind this weekend when at an Open House. I met a family that was looking to possibly buy the property, and the parent's were going to co-sign for the son on the loan, so that he could qualify.
Check out my blog on the reality of Co-signing... Credit and Co-signing Advice
The family was under the impression that the son would not qualify on his own because of issues with his credit. After going through his situation, I had a hunch that he might not be that bad off. One issue with credit, over a year ago, may have had the time to recover, and put him in the position to qualify. We went through the application, and last night when looking at his credit, it turns out he was strong enough to qualify. Submit it to Fannie Mae, PooF!, we have automated approval.
So we took them from possibly putting the parents on the loan, to now qualifying the son on his own, and not having to refinance at a later date to then put the son on the loan. That is a $3000 plus savings, plus they lock in a rate on today's terms, not what terms are like in the future.
Knowing your credit is extremely important, know where you stand, and find a reputable person in the mortgage business that you can trust. Without using someone qualified to offer you all of your options, you are setting yourself up for future issues, which in Real Estate, always adds up to future costs.
I may not be the person for you, but I think it would be a shame to not find out. You need to find someone that can give you ALL of your options, not just the standard options. Work with someone that thinks outside of the box.


Jon Vetter
Mercury Lending, Inc.
444 De Haro Street #130
San Francisco, CA 94107
650-465-5846 (Cell)

For your San Francisco Home Loan, from a trusted San Francisco Loan Officer.