All About Credit

Many homebuyers are worried about how their credit will affect their ability to buy a home. If you have had credit problems, be prepared to discuss them honestly with a mortgage loan officer.

You can be better prepared if you get a copy of your credit report before you apply for your home loan. That way, if there are any errors you can take steps to correct them before you submit your home loan application.

The approval of a home loan is based in part on how you have handled credit payments in the past. A report from the credit bureau shows the type of credit you've had, whether you've repaid promptly and how well you've managed the responsibilities of credit. There can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. If you had a problem that has been corrected, and your payments have been on time for a year or more, your credit may be considered satisfactory.

Tips for Solving Credit Problems

• Accurate negative information can stay on your report for seven years. A bankruptcy can stay on your report for 10 years.
• If you are contesting a credit report, bill or credit denial, write to the appropriate company and send it "return receipt requested". Always include your name, account number, dollar amount in question, and the reason you believe the bill is wrong.
• Keep all of your original documents; send copies only with your written letter.
  

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Credit Reports
The Federal Fair Credit Reporting Act requires every nationwide credit reporting company to provide you one free report every 12 months upon request. See AnnualCreditReport.com. Below you will find links to the websites for each of the three major credit reporting agencies.  The websites provide information on how to order your credit report, dispute an item on your credit report and opt out of mailing lists and pre-approved offers of credit.       

TransUnion
Experian
Equifax