Huge! Scores are a major factor in being approved for a home loan. Find out your scores before starting your home search. There are steps you can take to improve your credit score and fix any problems that show up on your credit report. It may take sometime so start today!
When you check your credit report, make sure you check all three of the national credit reporting agencies: Experian, Trans-Union and EquiFax.

  1. Review your credit report carefully for items that may be erroneous. If you believe something on your credit report is reported in error, you have the right to contest it. Contact the credit  agency and explain why you believe the item is inaccurate. Supporting documentation such as receipts and canceled checks can help your claim.  You can also contact a “credit report repair services firm†for some help.
  2. Accurate, derogatory items may show up on your report that can cause problems in your loan application, they can’t be removed,  however you can take steps to counteract them. In the event that you have missed payments in the past, take steps now to get your bills current. Late payments drop your score quickly. Take advantage of electronic payments in order to make sure your payments are made on time.
  3. Zeroing out  your credit balances is really not the solution. Established credit helps when purchasing big items, such as a home.  Avoid closing out your accounts, just keep your balances down or paid off and on time. When your lender runs your credit to make a decision on your loan application, he or she will want to see that you have had a long credit management history.
  4. Credit cards maxed out? Start with an aggressive strategy for paying some of them down. A critical factor,  that affects your ability to be approved for a home loan, is your debt to income ratio. In addition, high credit card balances can drag down your credit score.

It is generally better to begin with your highest-rate balances first. Many consumers are tempted to move around balances when they receive an offer from another bank that is good,  remember that the worst thing you can do when you are trying to make a major purchase is to open new accounts.
Speak to a lender today for information and guidance!
County Properties, 24 years of brokerage experience, trust and a Member of the local Better Business Bureau! We offer free counseling in real estate regarding; home values and information on options of selling vs. Foreclosure.
Click here to get loan information before the rates go up. To get started on viewing homes, condos, investment properties, pre-foreclosures, bank owned foreclosures (REO’s) or thinking of selling your property, please contact me today for free counseling at (619) 301-0200.
By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to www.CountyProperties.net/ and I’ll be happy to follow up and take great care of them.