Quick credit reset helps borrower secure single-family home

Mortgage agent: Dominique Stevens Property type: Single family home in San Jose. Loan amount: $675,000 at 4.25 percent. Loan type: 30-year fixed rate with no points. Backstory: Sometimes a little bit of luck and good fortune is what’s needed to purchase the home of your dreams in the Bay Area.

A professional who relocated to the Bay Area from Atlanta in 2014 contacted Dominique Stevens. She had found a perfect bungalow to rent from a retired couple who were living in the Sierra. It was a lovely home in a wonderful location. If only she could own something like it herself.

She asked the owners if they would like to sell to her, but for more than two years they demurred. Fortunately for her, in January of 2017 they decided to liquidate the San Jose home and gave her a call.

She was ecstatic. She had the 20 percent to put down, and excellent credit. However, she only had two tradelines open on her credit report. One loan was for her car, and another for a credit card that she paid off every month.

To obtain mortgage financing, many lenders require that a borrower have three active credit accounts.

Stevens pored over her credit report and noticed that the borrower had opened an account two years ago at a home improvement merchant and had never used it. She instructed the borrower to purchase something at the merchant, and pulled a credit supplement afterwards to show the necessary three active accounts.

Her loan was completed within 28 days and our borrower is the happy owner of her own home.

Dominique Stevens, Mayfair Mortgage Advisors, (415) 250-8908,

dstevens@mayfairmtg.com.

“To obtain mortgage financing, many lenders require that a borrower have three active credit accounts. Stevens pored over her (client’s) credit report and noticed that the borrower had opened an account two years ago at a home improvement merchant and had never used it.”