Buying a home is an exciting step for anyone. But the last two years have been challenging to say the least. COVID-19 will continue to impact the economy in ways we can’t anticipate. If you think you can’t buy a home because of your credit or financial health, you may be surprised to learn that making some changes now can get you to your goal faster. Here are a few things you should know about credit repair before getting a mortgage.
Review Your Credit Reports
You have to know your starting point to figure out the finish line. Request credit reports from all three credit reporting bureaus. Request your credit score from your bank. Once you can compare these reports, you can see where you need to start.
Best Credit RX can help you get started.
Work with a Credit Repair Specialist
You don’t have to do it alone. A credit repair specialist can help you understand your reports and find ways to make adjustments and corrections moving forward. You’ll do much of the work on your own to make these positive improvements in your credit. Repair specialists like me help guide you to dot every I and cross every T.
Fix Problems with Your Report
Not everything on your credit report will be something you’ve caused. Errors happen, and far more often than we’d like. If your report isn’t correct, it’s time to take action. Contact the credit bureaus to open an investigation that will lead to the correction.
Keep a Good Credit History
Do these things to maintain a good credit history:
- Pay bills on time
- Keep low credit card balances
- Don’t close old credit card accounts
- Limit your applications for new credit
- Check your credit report regularly
Apply for a Mortgage
When you apply for a mortgage, your lender will pull a credit report. If you’re worried that too many inquiries will lower your score, it’s okay. The bureaus do note when the report is pulled for mortgage transactions.
If you’ve done the work to increase your credit score and improve your debt-to-income ratio, you’re in a much stronger position to get a mortgage. Don’t wait; start today.