FACT: 79% of credit reports contain errors. Odds are that your credit report contains errors that can pull your credit score down and effect your ability to get a mortgage loan.
It’s important to note that knowing all three of your FICO scores (one from each of the national credit bureaus) is essential when buying a home. Buying a home can be difficult because of one major drawback-a poor credit history. Bad credit almost always creates complications when trying to purchase something as big as a home.
The lower your credit score, the harder it will be to acquire a mortgage loan. It is imperative, before you go house shopping, and long before you need to move, study your credit report and clean it up as much as you possibly can.
Here are 10 credit repair tips when buying a house:
- Obtain a free report from all 3 agencies: Experian, Equifax, TransUnion
- Pay all your debts on time
- DO NOT open up new lines of credit while going through the home buying process. Your credit card balances should not exceed 30% of your credit line.
- Check for inaccuracies and fraudulent information
- Give yourself time to fix your credit. If something needs to be fixed, then plan on giving yourself at least three months to remove inaccurate information.
- If you have legitimate negative marks on your credit, but you feel like you have a reasonable explanation for them; then you can contact the credit reporting agencies and ask that they attach a personal explanation from you.
- Once you have cleaned up your credit score, you can then reach out to a mortgage lender to get yourself a pre-approval letter. This will give yourself a tremendous peace of mind to start your house hunting.
- Transfer or spread out balances on cards that are about to max out. Do not close unused accounts, especially keep open the oldest accounts.
- Shop different lenders.
- Ask your lender if they can do Rapid resourcing. Rapid Resourcing is a way to rapidly lift your credit score by updating your credit file.
****STOP Getting Denied For Credit Because Of Your Credit Score!****
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Credit Repair is an additional service offered by The Latimore Group and it’s affiliated partners. This site is hosted and maintained by the Latimore Group, REALTORS® with Keller Williams Realty, Columbia NE. Financial Education Services and it’s partners are not affiliated with Keller Williams Realty. These trademark holders are not affiliated nor do they sponsor the The Latimore Group.