Before you go looking for mortgage financing, it goes without saying that you should review your credit report.
Now, there are three credit bureaus that mortgage lenders use – Equifax, TransUnion, and Experian. Despite all the commercials you see on TV to pay for it, you are entitled to a free copy of your credit report every 12 months. -- OMG, will freexxxxxx.com please get rid of that obnoxious jingle! Really, who writes that stuff?!
Now, if you’re married, it can be assumed that the majority of your credit cards and loans are held jointly. The majority of the credit shown on your report will also be reflected on that of your spouses. So, here’s a little trick of the trade to ensure you always have a good picture of your credit report – without having to pay for it!
Register for your credit report at www.annualcreditreport.com. For starters, choose just one credit reporting company for your report (I would suggest Equifax, since the majority of mortgage lenders in our area use this bureau).
Here’s a schedule:
Jan – He – Equifax
March – She – TransUnion
May – He - Experian
July – She – Equifax
September – He Transunion
November – She Experian
Now, you’ll have a full picture and a pulse on your credit report all year long. Review the information to make sure all information is correct. You are able to correct and or dispute information directly with the credit bureaus. If you have past credit problems, don't lose hope. Get on track now so that your ability to pay bills on time will be evident on your report when you apply for a mortgage. Be prepared to present a rationale for any adverse information. SLIPUPS HAPPEN! But will a little perseverance on your part, you can raise your credit score and qualify for a mortgage, even with today's stricter credit criteria. Contact me at dgreco@kw.com for more information on how to make your American dream a reality!
