What is the first thing you do when you want to buy a house? Nope. Not call a realtor.
You want to buy a home. That is great! But, before you jump in and start your home hunt, you need to do be ready. The first thing you need to do is be ready to apply for a mortage.
One thing which has a huge affect on your rate, is your credit score and report. If you don’t know what’s on your credit report, you could be in for some nasty surprises when it’s time to sit down with a lender.
There’s only one free government-sponsored resource for credit reports: AnnualCreditReport.com. It’s a great place to get a report once a year. Make sure you pull reports from all three credit-reporting agencies (TransUnion, Equifax and Experian).
A 2012 study found that 1 in 5 Americans have an error on their credit report. If something appears incorrect on your report, think twice before clicking “Dispute.” Why? Because just clicking that link can affect your score.
Do your homework first. An error could be showing up on just one agency’s report but not the others. It is usually best to handle disputes directly with the reporting agency.
When you get your full credit report, you still won’t be able to see your credit score. Your lender can pull your score, but won’t have access to the details of your report. If your report is not where you want it to be, consult your favorite financial institution for help. A mortgage lender is not a financial counselor and won’t be able to help you.
Check out all of our posts in our home buying and selling series!
For more budgeting tips, click http://twitter.com/savinmavens or visit http://communityamerica.com.
Author: Brian Luger, Director of Mortgage Lending for CommunityAmerica Credit Union. The blog and its opinions are expressly that of its author and does not convey the opinions or strategies of the Credit Union and should not be considered financial advice. CommunityAmerica’s Mortgage offers are subject to credit approval and terms may vary based on conditions.
You have the right to a free credit report from AnnualCreditReport.com or (877) 322–8228, the ONLY authorized source under federal law.
