Credit questions about buying a home
Question: I am starting to look into buying a home, and I have a question about >>how my credit affects me or if there is anything I need to do to >>prepare.
>>I had a lot of credit debt up until last year with late payments and >>collections, but I eventually paid all of my debts off. When I called >>one of my creditors originally to pay off my debt, the associate asked >>me if I was in the process of buying a home. If I was, then they were >>going to send me a letter of some kind. At the time, I wasn’t looking >>at buying a house so I said no. Can anyone explain to me what the >>associate might of been referring to?
>>I do have relatives with excellent credit who are going to be helping >>me with a loan, but if anyone has any suggestions/websites/information >>about how I should approach buying a home in my preparation with the >>bad credit history, then that would be great.
Answer: My first recommendation to you would be to go to www.myfico.com and pay the 12 bucks so that you can analyze your credit report and see what your score is. Having just gone through the mortgage process I know how important this score is to lenders. The higher your score the better the rate you will receive, though I’d bet there are exceptions. Once you get the report, which is provided online immediately, you can then look at what things you can do to improve your score thereby giving you a chance at a better rate. That being said, it seems there is no way to erase the delinquent payment history from your score [they had one lousy overdue credit card payment from 6 years ago on my report] but there may be other things you can fix now.
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