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Home Mortgages – Will your Credit Report let you Down?

safe-at-home.jpgNow you think is the right time to buy yourself a home. You have dreamed of getting off the renting merry-go-round and want to try and pay off a house for yourself.  The big question is can you afford to get a mortgage? The other question is whether your credit rating is good enough to get a mortgage.

Mortgage Information

You really need to get a copy of your credit report so you can see what is in it. Lenders and loan brokers use your credit report to look at your background and it lists almost everything about your life on paper. A credit report lists things such as:

  • previous places of residence as well as your current address
  • your current and past employers
  • payment history for paying your bills – it lists whether your payments are on time or late
  • your criminal history if you have one
  • whether you have been sued or filed for bankruptcy

Your credit report gives a statistical picture of who you are. Lenders, creditors, insurance companies, employers and any other businesses can purchase a copy of your report from a credit agency. They use it to help them assess you for a residential loan, for credit of any sort, and to see whether you are a good risk or whether they should employ you.

Your credit report is important and will affect whether or not a lender offers you a mortgage. The better your credit rating the lower your mortgage rate. If you know what your credit report says about you then, if there are any negatives, you can work at improving it to give you a better a chance of getting a mortgage.

Review your Credit Report

Once you receive your credit report, check it over thoroughly. If there is anything in it that is incorrect then send the credit agency a letter informing them of the facts surrounding the misinformation you have found in your report. It is important to get mistakes fixed as they can lower your credit score which can affect everything you try to achieve financially. If it is found you are correct, after the credit agency investigates, then the misinformation is corrected or removed from your report.

Something to remember is that most of the information on your report stays there for a period of 7 years.  Your debts area-cabin-on-a-lake-to-call-home.jpg listed on your credit report and while you may pay them out within 7 years, while they remain on your credit report their status changes from an unresolved debt to a resolved debt. If there are resolved debts older than 7 years still showing on your credit report contact the credit agency to have them removed.

Repairing your Credit Report

Don’t believe those advertisements on television, the internet or newspapers that promise quick fix solutions for your credit rating. Quick fix solutions just do not exist so don’t get sucked in. It takes hard work and commitment to improve your credit score. Simple as that.

If you want to realize the dream of owning your own home and getting a mortgage from a loan company, then work hard to ensure your credit report stands up to scrutiny. This gives you a head start to success and a mortgage with a low mortgage rate.


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