Are You a Senior looking to finance a new home?

Many of our clients are seniors who are looking to downsize their residence or relocate to another part of the country.

When these folks went to obtain mortgage pre-approval, they first became aware that they were not credit qualified for the mortgage they sought.

Our foremost piece of advice to seniors is to regularly check their credit report. We advise them to do this at least once a month. Presently, as a result of the Covid pandemic, they can do this once a week at freecreditreport.com. (This offer is presently available until at least April of 2022.)

Senior consumers can also utilize free credit reporting sites like Credit Karma and Freecreditscore.com.

Be aware that the scores that are offered by these sites are different from the type of scores that are utilized by mortgage lenders. The credit history reported on these sites, however, is accurate and comparable to what is reported to lenders when they pull a report.

Senior consumers are often not aware that accounts are not reported on their credit reports "forever." Generally, information is reported for seven (7) years after an account was last active.

If the mortgage on your existing home or auto has been paid off for seven or more years, there is a good chance that the favorable payment history on that account is no longer reporting nor contributing towards a favorable credit score.

Finally, our senior clients are sometimes surprised to see student loans reporting on their credit.

Most often, these loans are Parent PLUS loans that were taken out as part of their children's education. The child is not a party to these types of loans, only the parent who signed for them is. I have had more than a few clients who were “shocked” to learn that their son or daughter, who is now a practicing doctor or lawyer, has not been making payments on those loans and has severely damaged the parent's credit scores.

Do you have questions about your credit or need help restoring your credit? Give us a call (314) 429-2040. Let’s talk.