Did you know that you can get a credit card even if you have no credit history whatsoever?
For people who can be classified as ‘credit invisible’, it may seem like there are a ton of barriers to what you can do financially. For instance, most people dream of buying a home because it’s one of life’s greatest assets, but this can be difficult without credit.
Do you lack a long and reliable credit history but still want to invest in a home? Keep reading to learn how you can go about buying a home with no credit.
What a Lack of Credit Means
If you’re a first-time homebuyer with no credit to your name, then you should learn what that means for your situation. Put in the simplest terms, a credit history allows loan providers to see how reliable you are.
There are a handful of reasons why someone would have no credit history. If you live abroad and are trying to buy property in the U.S., you won’t have an American credit history lenders could look at. Another reason that’s common is that the person is simply too young to have any kind of credit history.
You may be surprised to know that if you haven’t used your credit in 2 years or more, then it will be as though you never had credit in the first place. Yet another reason could be that the person doesn’t like taking on debt and doesn’t have a credit card and hasn’t ever taken out a loan.
Buying a Home Without Credit
The good news is that the best mortgage lenders will still give you an opportunity to buy a home, but you’ll need to provide other info in order to be approved. For starters, you’ll need a range of documents that can prove the amount of income you earn every year. This can include pay stubs, tax returns, and more.
Before you track down the best home inspector, the lenders will also want to have a detailed look at your general payment history, such as phone bills, utilities, and car insurance.
Alternative Credit Reports
Eventually, you can get to the point of receiving a home appraisal value, but you’ll need to jump through some hoops.
For instance, you can pay to get an alternative credit report. This will prove to lenders that you’ll be able to pay off any loans when you buy casas en venta.
Buying a Home With No Credit Is Easy
Now that you’ve learned all about how you can buy a home with no credit, you can make sure you have a reliable roof over your head for you and your family. After all, buying a home shouldn’t be just a privilege for people with illustrious credit scores.
With time, finances can get more and more complicated. That’s why it’s a good idea to bookmark our website and keep up to date on all the tips and tricks related to finances, real estate, and a bunch of other topics.