Check Your Credit Report

Real Estate

PREPARING FOR THAT BIG COMMITMENT OF BUYING A HOME

Check Your Credit Report"

Simply put, the past can either haunt or help you. If your debt to income ratio is too high, financial institutiions will likely be wary of extending another loan. Your credit matters.  Credit card companies and lenders rely on credit scores, which determine someone’s chances to borrow money — and how favorable the terms will be. Check your own score yearly by ordering reports from the three major credit scoring companies: Equifax (www.equifax.com), Experian (www.experian.com), and TransUnion (www.tuc.com).

What To Do:

Notify the credit bureau of inaccuracies. Close accounts not in use. Request that late payments older than seven years be removed. Verify and update accounts and account numbers. Verify address and Social Security number.

How to Improve Your Score: Pay your bills on time. Reduce outstanding debt. Build up your savings. Don’t fall for illegal schemes that help you create a new credit identity.

Please understand what you can afford: Most lenders require the total housing costs not to exceed 28% give or take of the gross monthly income and total debtt payments per month (inclusing the mortgage) not to surpass 36% give or take. This can vary with lenders.