Home Buying Tips - Improve your Credit Before Buying your Dream House- By: Flynna Jones
One of the most important requisites in mortgage application is your credit standing. Your application for mortgage can normally be denied if you have a bad credit record. To be able to clear your mess and improve your credit score, you must be diligent in paying all your dues. And you have to learn how to file a dispute if you have discovered that there is something wrong with the report. Moreover, you need to be cautious in every transaction you do since this can truly affect your credit standing. Some of these factors that can lower your standing are late payment for your dues, suspicious transactions and so on.
According to mortgage experts, you have to repair your credit first before entering into another financial responsibility. There are instances that you can still be allowed to borrow but you will get higher interest rates. Apart from that, you are asked to pay a significant amount of down payment. Lending companies are just making sure of the interest of their business and protect from negligent borrowers.
At first, if you want to clear out the bad impression about you, it is your credit rating that you should prioritize. Look for various ways on how to improve the figures. Do not be worried if you have the lowest rating from the credit agencies, there are still several ways on how to clear the mess.
When you start improving your score, you have to identify the problems. You do this by asking a copy of your credit history from the credit bureaus. These reports will present you all the transactions you made in your credit cards and other credit accounts you have. Search for errors if they exist. As soon as you found some of the, file a dispute immediately, regardless how much the amount is. You have to request for an investigation so you can clear out your name.
Do not be too lazy to inspect your reports. Make use of highlighters so you can easily identify the errors or suspicious transactions. Some of the factors you have to remember are transactions that you have never made, and other transactions that you are filing for dispute. Be sure to get a copy of all reports for your reference in the future.
If you are filing for dispute, be sure to read the directions carefully. In the event that you can not find the instructions, tell the credit bureau and tell them the transaction that was erroneously reported. When you send the letter, include the report where you highlighted the transactions that you are pointing out. In this way, the credit bureau will have clearer understand on the issue and respond to immediately.
For those unpaid dues, be sure that you settle them as soon as possible. Regardless of how much the unsettled balances are, you have to pay off all of them to clear your name. Through this, you will surely have better credit standing.
Taking good care of your credit rating is necessary since this can greatly affect your mortgage application. If you are looking for financial assistance, be sure to prove these credit officers that you are diligent enough to pay your dues on time. Once you have successfully done this, you can now start applying for a loan.
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