There are 3 things that are certain in this life: death, taxes and the fact that there are more and more "surprises" as you get closer to the closing table in buying a house. A good friend of mine has a relative who just sold their house...and the closing was delayed because the buyers' were here on student visas. And they had expired months before.
Delays can happen, and there are factors that you're not in control of in the real estate process. Make sure you have your own factors in order so as to avoid your own enexpected "surprises." If you're even thinking of looking for a new home within the next 3 years, be proactive and get your credit in order.
It seems that we should be able to get our personal credit report free at any time. Alas, there always seems to be a catch and in most cases you have to pay in the end. There is a government-authorized site where you can get copies of all three of your credit reports (Experian, Equifax, TransUnion): www.annualcreditreport.com
The only catch is that you can't see your credit score free. Yep, you guessed it...that will cost you around 7 bucks. What you CAN see is any issues on your credit report that require attention. A recent article in RISMedia outlines what to do to shore up your credit. Don't depend on the credit bureaus to catch everything. Look over your credit report and make sure everything's in order:
1. Check your reports for accuracy. Financial columnist Liz Weston, author of “Your Credit Score,” says to look for credit cards or other accounts that aren’t yours, negative entries that are more than seven years old, duplicate past-due items and incorrect Social Security number or date of birth.
2. Dispute errors. Credit bureaus are required by law to investigate mistakes you bring to their attention and report back to you.
3. Pay your bills on time. Payment history makes up more than one-third of the typical credit score determination, so paying bills on time all the time is essential to maintaining good scores. If you’re forgetful, consider setting up automatic payments through your bank.
4. Pay down your debts. Lenders look at how much of your available credit on cards and credit lines you are using. If you are maxed out or close to it, lenders could assume you’re on the financial edge and not lend you money.
5. Keep credit cards and other revolving accounts open. You may be tempted to close old accounts you’re not using, but that won’t help your credit scores and may actually hurt them. It reduces the amount of your available credit, which can lead to lower scores.
It takes time to shore up your credit, so there's no better time than now to get started. Being proactive will help you avoid unwanted surprises once you're in the real estate process and get closer to the closing table:)
To read the full article, click here.
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