In preparation for purchasing a home, there is more to do then just searching through listings and setting your own buying criteria. A savvy homebuyer will take a look at their credit history long before they begin the process of searching for a new or dream home. If your credit is rock solid, you will be eligible for better loans at more affordable rates. If there have been some problems in the past credit history, you shouldn't give up hope. It is just time for some proactive behavior.
You need to take a look at the credit scores your lenders will be looking at BEFORE the process begins. Most lenders use Equifax, Experian and TransUnion to check your credit history. It is imperative that you check your credit history before the lenders do. It would be a good idea to check all three in a three to six month period before you plan to look for a home and begin the mortgage process. Under a new Federal law, you have the right to receive a free copy of your credit report once every 12 months from each of the three nationwide consumer reporting companies. To request your free annual report under that law, you must go to www.freecreditreport.com, fill out a short questionnaire and you can see what your lenders are going to see. This proactive step can allow you to take steps to correct any missteps or mistakes on these reports.
How can you improve your credit scores? There are a few simple steps that you can take to keep your credit in good standing:
•· Pay your bills on time
•· If you have missed payments, get current and stay current (the longer you pay your bills on time, the better your score).
•· Be aware that paying off a collection account, does not remove it from your report and lenders may still use these issues in evaluating past credit patterns.
A little amount of work before beginning your home search will make things easier in the long term. Of course, for more information on Wilmington and surrounding area homes, please feel free to visit my website, http://www.thekeytowilmington.com/.
