We recently sold our second house and consolidated to one place. Looking to borrow against the equity to do some investing but having issues with a few lenders because they seem to only want perfect credit, which I do not have. The thing that drives me nuts is that I tell them my story, what I owe and where my credit is at and they say oh yeah no problem then they do a hard credit pull, and tell me they wont lend because of my credit card/usecured debt is too high and my credit is too low. But it is EXACTLY where I told them it would be and told them I did not want to do a hard pull unless they thought it was something they could do. And of course every credit hit hurts my score.
My home is worth about 550K and I owe 312k. I also own a cabin worth about 35k that is free and clear. I have made 6 figure income between my main job for the last 8 year. I guess I am wondering what I am missing here? Why do they say they can get the deal done with what I give them and then never can.
First things first. Get your financial house in order. People with money don't like to lend to folks that don't know how to deal with it.
Think about it this way, would you give a chainsaw to someone who has already cut off an arm and leg with one? Any reasonable person would say "um... nope". Money, like a chainsaw, is nothing more than a tool.
With a 6 figure income you should be able to come up with a plan to solve what ever the financial issues are, provided you (and everyone in your family too) are dedicated to doing so. I would submit that if you really were committed to doing this, you could live on half of your salary.
In reality the only way forward is to change your relationship with money. Learn how to more effectively use it like a tool. Once you can do that lenders will lend, and you will have more real weath than you can imagine.
I know that it's probably hard to hear, I know that it's hard to do, but anything worthwhile is hard all the way around.
James, I appreciate your thoughts and it is definitely what we are working towards. Unfortunately it is not that simple when life hands you some crap and you need to deal with it. I have never defaulted or settled on any debt. The worst thing on my report from a few years back was 60 days late or a few loans. I am just frustrated that they will tell me they can get the job done with what I have and then say they cant because of what I already told them I have. So they pushed things through and then walked away, yet I am stuck with a hard pull on my report.
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