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Paul Yamilkoski

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Is It Procrastination?

I see it all the time. In fact, I see it every week.

Every week I see clients that are eager to buy a new home who get denied for a loan due to credit issues. In almost every case, there is one foundational problem – their credit scores are too low to qualify for a mortgage.

The credit score is almost never the only problem in their way, but it is the most foundational one, because it all starts there. If you do not have a qualifying score, generally speaking, nothing else matters. You are not getting a mortgage.

However, that is not what I am referring to that I see every week. What I see every week are people that make some very odd decisions.

I’ll give you an example as an illustration.

I talked to a couple that wants to buy a home very soon. Their time goal is to be buying a home in the next two to three months. They were sent to me because their credit wasn’t good enough to get qualified for the mortgage.

I had not seen a credit report yet and was meeting with them to talk over what they thought they knew about the problems on their report. As we talked, the couple noted that their scores were a little too low to qualify. They indicated they had several credit cards with high balances, some collections with balances, possibly some accounts that were not theirs, and they had been told there was at least one account with dispute comments showing that would need to be addressed before they could get qualified for a mortgage.

Well, the score issue was clear and there were several things that could be done to change that, starting with paying down their credit cards. I told them what the targets should be to get the most improvement and guided them in the steps to take to ensure it happened quickly.

The other issues that were known and believed to exist, would not be quite as cut and dry. The dispute comment would have to be removed. That is fairly straight forward. The unknown was the other accounts they mentioned. It was unknown if they would in fact get in the way of qualifying. It was also unknown exactly how long it might take to get them corrected.

I told the couple, if the accounts were not reporting in such a way as to get in the way of the loan, then the time line they want to meet would be only dependent upon how fast they could pay down their credit cards. However, if the accounts were going to need correction, then the time line might be a bit tight. It may go very quickly and smoothly, or the creditors and credit bureaus could make something seemingly easy into something complicated. There was no way to promise to be done in their time line.

Now I know many credit repair companies that would go ahead and promise the world to get a client enrolled. I and the company I work for, Heartland Credit Restoration, are not among them. We won’t do that. I did tell the couple that we would do everything we could to make sure it happened as quickly as possible.

The couple said they understood and were eager to start moving forward. I told them as soon as I got a look at their credit report, I would let them know if the accounts in question really needed to be addressed to get them out of the way of qualifying. If they needed addressed, I would help them get started with our services. If the accounts were not in the way, I would guide them in taking care of things themselves and save them the cost of repair efforts.

I got a look at the credit report about an hour after meeting with them, and there were two collections that were reporting as brand new, and that was going to be a problem. The accounts were inaccurate in many ways and paying them was not going to solve the problem.

So the resulting situation was this. At a minimum, the couple needed to improve their scores, remove a dispute comment from at least one account and get the two collections corrected, in order to get qualified for a loan. I let them know we would need to get started right away to meet their time goals of owning a new home.

Their response was that they were going to work on paying down the credit cards and hold off on fixing the other problems at this time.

This brings me to the thing that I see every week. People have a goal. They have a time frame that they feel is important to realizing that goal. They seek help to meet that goal. They determine the steps that need to be taken in order to meet that goal, make a plan to get it done and then they stop in their tracks or only do part of the plan.       fullsizeoutput_14b4

I confess that I have done the same thing in the past. I don’t think I know a single person that can say they never have done the same thing, at some point in their life, at least once. There can be many factors and reasons that bring us to that decision, and sometimes it is the right thing to do. But the reality is that most of the time those reasons are just excuses for not taking meaningful action. Not executing a plan, or only executing a part of a plan never gets the results we desire.

Events like this are a continual lesson reminder to me to evaluate my decisions and determine if I am moving forward or letting myself stall or get off track. If a goal is worthwhile, then you have to keep moving forward and not get sidetracked. It is too easy to only focus on part of the solution or plan and put our effort into getting nowhere.

I’m interested in your thoughts and comments, so feel free to share them.

As a credit repair professional, I can say that if you are facing credit challenges, it is easy to get caught up in only addressing the easy parts, or avoiding the whole situation completely and hoping it will go away. Neither approach will change your situation. Get the help of a reputable credit restoration company like Heartland Credit Restoration, to turn things around in a meaningful way. Credit may not be fun or easy, but it will feel that way with good help, and you will be so glad you did. There is a great feeling when you no longer have collectors calling or mailing you and you have a lender tell you that you qualify to get them home of your dreams.

Call me for a free consultation to see how we might be able to help. 319-533-5236.

If you are a lender or realtor that has a client you might have to turn away due to credit problems, then let me see if Heartland Credit Restoration can help change that client into a approved client. You should never have to say “NO” to a client. We can help change those into a “YES”. Call me for a free consultation. 319-533-5236.

I’m looking forward to helping you. In the mean-time, I hope you have a wonderfully blessed day!

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