Your credit score is an integral part of being approved for your mortgage. Unfortunately, purchasing a home can be a difficult prospect because of one major drawback, a poor credit history. Bad credit almost always creates complications when trying to purchase a property.
Your credit score can literally be the difference between being granted a home loan of your choosing and being flat out rejected. A credit report tells a financial story of borrowers as payers of debt, and it has a long memory. Very few individuals manage to go through their life without making a single financial mistake. Also, there are many individuals that will pay cash for everything and end up with a lower credit score than those who actually juggle debt.
The worse your credit report is, the harder it will be to acquire a mortgage. This is why it is imperative to study your credit report and clean it up as much as you possibly can. In several months to a year’s time, you can improve your credit report and even raise your credit score significantly. This will give you a much better chance of moving into your own home at a competitive interest rate.
A low credit score means that you will be charged a much higher interest rate when you apply for a home loan. Additionally, you will be required to contribute a much larger down payment of cash. Finally, if your score is very low, you might simply be denied altogether, although virtually every mortgage company now has special programs designed to help those with bad credit get loans for home purchases.
Improve Your Credit
If you have a sturdy job and income, or if you have worked in the same field for over two years and if you are able to put 10-20% down on a home, you will find your chances of acquiring a mortgage greatly improved, even if you have a low credit score.
Try to acquire a copy of your credit report from all three credit reporting agencies because they will not be exactly the same and you need to know where the discrepancies lie. Some creditors send information to all three agencies, but some will only send reports to one or two. In addition to this, when a mortgage lender pulls your report to check your history, they will use the median score from the three to decide whether or not to qualify you.
Examine the reports. Make yourself comfortable with the details and start assimilating the information on them. Check every single item closely. Verify that everything is correct, such as your your name, Social Security number, addresses, employers, debts and any public records. It is not uncommon for people to find errors that will even bring their credit score down by hundreds of points less than it should be. These errors can be caused by simple mistakes, like transposing a an incorrect number, but they can also be due to criminal identity theft. Either way, you need to know!
Cleaning Up Your Credit
This generally requires sending out letters. You should keep careful notes and copies of everything you do and send your letters via certified mail to the credit reporting agency. If they verify the questionable information that you are disputing, they must remove it! They only have 30 days to respond to you.
If you do not have the time for this, or you feel it is too complicated, you can easily get the aid of a reputable professional. Team Barber has the skill and experience to accomplish this kind of repair work with ease. After each questionable item is removed from the credit report, be sure to insist that the credit bureau mail you a revised, corrected copy. Now you are on the way to owning a home!
There is no instant method to repair your credit, even when there are unfair inaccuracies on your report.You will need to exercise patience with this process. The end result will be well worth the effort.
Get in touch with Team Barber today in order to take the first step in repairing your damaged credit.