Neha Sharma
Neha Sharma
02 Apr 2022

Maybe you are new to credit, maybe you have bad credit and maybe you have no credit, so this video should help you, but unfortunately, bad credit usually means higher rates, down payments, and sometimes rejections.

1. Mortgage: manual underwriting, they take a look at your rent payment history and utility bill history
- It's basically the same as when you rejected for a credit card by the system
- But you call in have a real person take a look at your finance
- And they approve you

They are going to Focus on these 3 things:
- Income: if you only make 10k a year but you want to buy its 500k property it's not going to happen. But if you make 40k a year and you want to buy a 200k property with maybe a 20% down then It might happen.
- Payment history: this will come from rent payments, utilities, and everything else. That’s why its called manual, and that why most banks hate it, its easier to just do it based on your credit score.
- And debt to income ratio ( including the property mortgage, insurance tax, and hoa fee

Formula: debt/% ( 1300/.43) | then multiply it by 12

For example:
- You want to buy a 380k property: the mortgage is 1300 a month, insurance, tax and other fees: total cost is $2000 ( if you put down 20%)
- That means that using the 43% debt to income ratio, you will need to make $55,813 to actually qualify for that mortgage.
- Now they will also take a look at student loans, credit cards, car payments, personal loans ( and that when things become a lot more complicated because you’ll need to earn more and more income )

- You can ask a loan broker, to help you find a manual underwriter to review your qualifications
- Churchhill Mortgage
Tip: you can allow multiple mortgage companies to pull your credit within 14-45 days, and all of those inquiries will be lump into one. ( so your credit score doesn’t take a hit)

2. Personal loan
- This is a little more complex
- Because the amount can range from $1000 to a lot more money
- And you also have secured personal loans and unsecured personal loans

If you are new to Credit:
- They will look at the factors I mentioned before, income, payment history and also a debt to income ratio
- If it makes sense, then usually they will grant you the money has long as you can afford it
- And the rates might not really be that high

However, if you have Bad Credit
- It will be a lot hard to qualify
- And if you do find a lender, they will charge you extra for the risk they are taking
- Sometimes double what a normal person would pay

I recommend: if you have bad credit, just take some time to pull your credit report and get to work on repairing it.

3. Car loan with no credit or bad credit
- Is a lot easier to actually get
- Because the loan is secured against the car
- If you don’t pay, they take the car back ( and that’s why we have the show repo )

New to Credit:
- If you have a decent down payment, also a decent income, and history they can put you in that car you want. For a decent price.
Bad Credit:
- I actually know someone that car a car he loves, and has bad credit and is paying 16% in interest for 5 years, and had a problem and almost pays around 500-600 insurance per month ( to me its terrible idea)

Best Option: Buy a used car you saved up for 3-5 years old, and ride it till the wheels come off.


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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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