Understanding Your Credit
It’s true that you need good credit to buy a home, but you don’t need perfect credit. If you don’t have good credit right now, you can start improving your credit. Poor credit usually means higher interest rate for the loan, and you can end up paying more in interest.
Where can I order my credit report?
You can order your credit report from any of the major credit-reporting agencies below.
Equifax
1-800-685-1111
www.equifax.com
Experian
1-888-397-3742
www.experian.com
Trans Union Corporation
1-800-916-8800
www.transunion.com
If you find any errors or outdated information on your credit report, you should have the mistakes corrected because it could hurt your chances of getting the best interest rate you deserve or getting a loan. You can correct the mistakes by calling the credit-reporting agency or the creditor.
Finding out How Much Mortgage You Can Afford
You can save yourself a lot of time if you find out how much mortgage you can afford. Generally, the more your gross income is, the more you can borrow. But credit card debts, long term debts, and other monthly expenses can negatively affect your lender’s decision. Please consult a loan representative to find out how much you can borrow. It is also a good idea to get yourself pre-qualified and pre-approved by a lender before shopping for a home.
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