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Credit score got you down? It’s not as bad as you may think. While it’s true that low credit makes it harder to get a home loan, there are steps you can take to make homeownership a reality:
Get a copy of your credit report – from all 3 credit reporting agencies (Experian, Equifax, and TransUnion) and check to make sure there are no errors.
Dispute all errors – Errors can occur due to identity theft or simple clerical mistakes. You can find additional information on disputing errors at the Federal Trade Commission website.
Pay off your debts – This is not easy for some, so let’s prioritize! First, bring any past due accounts up-to-date. Then, if you’ve made just a few late payments on accident but are generally on time, try calling the company who registered the payment and ask that the late payment be removed from your record.
Don’t close credit card accounts – This can hurt more than help. Then, pay the balance of each credit card down to 25% or less of the respective credit limit. (example: If your credit limit is $4000, pay the balance down to $1000 or less). If you are unable to pay your cards to the 25% mark or less, try calling your credit card company to ask for an increase to your credit limit. This can accomplish the same goal.
Pay on time! – If you’ve been late making payments in the past, it’s time to change your ways and avoid opening any new lines of credit.
Once you feel that you’ve adequately repaired your credit, it’s time to talk to a mortgage professional. If you need help finding a loan officer, give us a call today at 615-933-1000 or send us an email at info@livingtn.com!