Is Your Credit A Road Block In Purchasing Your Next Home?

A while back, while managing a large, high volume Real Estate Office, I asked an important question during our regular Real Estate Agent Tuesday morning meeting. The question: “What is the greatest roadblock your clients face in purchasing a house?” Almost without exception, it involved clients having to overcome credit issues. In most cases, issues their clients didn’t even know existed.

Now for the BIG question, directed to you my reader: What do you know about your credit and most of all, do you know how to improve it? Here are some thoughts that will definitely propel you forward in a positive way toward improving your credit rating.

1. Take a look at your credit reports and scores
You should know what the top three credit bureaus -- Equifax, Trans Union and Experian -- are saying about you. Your really don’t have to wait until you hear your Loan Officer say, “I’m sorry, it is your credit, you don’t qualify for a loan right now”. It’s your credit, YOU should know what the reports are saying. Many sites exist where you can do this. Simply Google for “Free Credit Report”.

2. Go over your credit scores and reports with a fine tooth comb
Almost every consumer has an error on at least one credit report from one of the major credit reporting agencies. My understanding is Credit Reporting Agencies receive information from your creditors and they do not verify the information. That means, you must verify!

3. You should dispute everything where you believe errors have occurred
Remember, a bad report costs you money so pay attention to being thorough! You can either complete the dispute form provided with your credit report or write a letter. The credit reporting company tells you clearly how to dispute. If you need more information try following these steps: 7 Steps To Fixing Your Credit Report

Don’t forget to keep copies and records of all the forms, letters and documentation that you send the credit agencies, plus dates sent. The credit company must investigate any relevant dispute within 30 days of receiving your letter. Any item that is not verified as accurate by a creditor is removed.

4. Say "Goodbye" to debt
When you are serious about your credit, you will need to come up with a spending plan that reduces your debt and sets you up to pay on time, every time. Call your creditors if you are having trouble paying your bills on time and negotiate to keep your accounts current and from being reported as "bad debt." Often creditors will work with you when they sense you are serious about doing the right thing with your bills.

5. Don’t forget to save
It is simple: Open a savings account at your bank. This shows creditors that you are working to save and that you have reserves to repay debts.

David Burrows, Realtor®
Classic Realty
Annandale, VA 22003
Write David
Web: Burrows Properties
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Blog: Real Estate Starting Point


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