Dear Dave,

I really don’t have any established credit because I have never taken out credit or had a credit card. What will happen when I’m ready to get a mortgage and buy a house?


Dear Jillian,

There are basically two ways to be able to get a home loan. One is to have credit in many places and a huge FICO score. It’s a little silly when you really think about it, but it will give you a mortgage ready almost instantly.

When you don’t have credit, a lender has to do what’s called a manual underwriting. This is something that a lot of banks were doing back then, when they used their common sense when it came to lending.

Fortunately, a few places will still work with you this way. They look at your work history to see if you have a stable job and a good income. They also want proof that you pay your bills on time. It can be as simple as showing them multiple utility bills, rent statements, and other receipts. They are basically looking for a long history of proof that you are honoring your financial commitments.

Remember, buying a home with cash is always the best way to own a home. But I don’t beat people to get a mortgage, as long as it’s a 15-year fixed rate note. Do your best to save also for a deposit of at least 20%. This way you will avoid the additional expense of PMI (private mortgage insurance).

Excellent question, Jillian!


First, define the long term

Dear Dave,

What’s your advice when it comes to investing a one-time lump sum of $ 4,000 over a long period of time? I recently received an inheritance from a deceased uncle and want to make the money work for me. I’m 33 and my house is paid off, plus I have no debt and a six-month emergency spending fund. I also maximize my 401 (k) at work. Thank you for your advice.


Dear Pat,

I’m sorry to hear about your uncle, but I’m sure he was proud of the responsible young man you have become. You have made very mature decisions regarding your finances, and as a result, you have come to a good place in life.

When it comes to invest, I consider a “long period of time” to be 10 years or more. If this is your case, I suggest you a good mutual fund with a solid 15 to 20 year history.

I know some people like to take risks and play individual stocks on a one-time investment like this, but I don’t think that’s a good idea. Individual stocks just don’t consistently generate the kinds of returns a good mutual fund does will be over time.


Dave ramsey is a seven-time national bestselling author, personal finance expert and host of The Dave Ramsey Show, heard by over 16 million listeners every week. He has appeared on Good Morning America, CBS This Morning, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992 Dave has been helping people take back control of their money, build wealth and improve their lives. He is also CEO of Ramsey Solutions.

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