“24 Month Quest to Acquire the Home He is living in”

I had met a plumber regarding replacing a heating system and during my time interviewing him, he also asked me what I did for a living and let him know I was in the mortgage business. John said he is almost giving up on the mortgage process he was involved with.

He had been renting a home with an option to buy and had been working on getting a mortgage for almost two years. He told me that when he started he hardly had any credit and only had one credit score. The bank that he originally met with told him he needed to obtain a “few” credit cards, which he did, he now had 7 cards.

Over a number of months he obtained credit that reported to the credit bureaus, the problem was that no one explained to him to pay off the balances or most of the balances each month. As crazy as it seems, he thought he was supposed to maximize the debt each month and often going over the high credit limit.

When I told him he was doing this credit stuff all wrong he looked at me like a deer in headlights. I told him he had to clean up all the balances that day and we will wait for each account to report the information, we’ll wait 60 days.

In 60 days he went from a 545 to a 621 mid score. I took his mortgage application yesterday. Spoke with the owner of the home for him to discuss a purchase agreement. He asked if this was really going to happen. Of course it will happen.