Late payments, missed payments, of debts that you never bothered to pay tarnish your credit report and squelch a lender’s desire to offer you mortgage loan. If you’ve been turned down for a loan because of your less than stellar credit history, request a free copy of your credit report from the lender that turned you down.
Getting a report before you even apply for a loan is advisable and no longer costs you any money. Once a year, you’re entitled to obtain a free copy of your credit report from each of the three credit bureaus. The contact information for the credit bureaus is
Equifax: 800-685-1111 www.equifax.com
Experian: 888-397-3742 www.experian.com
Transunion: 800-916-8800 www.transunion.com
If problems are accurately documented on your credit report, try to explain them to your lender. Call other lenders and tell them your credit problems up front and see whether you can find one willing to offer you a loan. Mortgage brokers may also be able to help you shop for lenders in these cases.
Sometimes you may feel that you’re not in control when you apply for a loan in reality, you can fix a number of credit problems yourself. And you can often explain those that you can’t fix. Some lenders are more lenient and flexible than others. Just because one mortgage lender rejects your loan application doesn’t mean that all the others will.
As for erroneous information listed on your credit report, get on the phone to the credit bureaus. If specific creditors are the culprits, call them too. They’re required to submit any new information or correct any errors at once. Keep notes from your conversations and make sure that you put your case in writing and add your comments to your credit report. If the customer service representatives you talk with are no help, send a letter to the president of each company. Getting mistakes cleaned up on your credit report can take the tenacity of a bulldog-be persistent.
Another common credit problem is having too much consumer debt at the time you apply for a mortgage. The more credit cards, auto loan, and other consumer debt you rack up, the less mortgage you qualify for. If you’re turned down for the mortgage, consider it a wake-up call to get rid of this high-cost debt.
Late payments, missed payments, of debts that you never bothered to pay tarnish your credit report and squelch a lender’s desire to offer you mortgage loan. If you’ve been turned down for a loan because of your less than stellar credit history, request a free copy of your credit report from the lender that turned you down.
Getting a report before you even apply for a loan is advisable and no longer costs you any money. Once a year, you’re entitled to obtain a free copy of your credit report from each of the three credit bureaus. The contact information for the credit bureaus is
Equifax: 800-685-1111 www.equifax.com
Experian: 888-397-3742 www.experian.com
Transunion: 800-916-8800 www.transunion.com
If problems are accurately documented on your credit report, try to explain them to your lender. Call other lenders and tell them your credit problems up front and see whether you can find one willing to offer you a loan. Mortgage brokers may also be able to help you shop for lenders in these cases.
Sometimes you may feel that you’re not in control when you apply for a loan in reality, you can fix a number of credit problems yourself. And you can often explain those that you can’t fix. Some lenders are more lenient and flexible than others. Just because one mortgage lender rejects your loan application doesn’t mean that all the others will.
As for erroneous information listed on your credit report, get on the phone to the credit bureaus. If specific creditors are the culprits, call them too. They’re required to submit any new information or correct any errors at once. Keep notes from your conversations and make sure that you put your case in writing and add your comments to your credit report. If the customer service representatives you talk with are no help, send a letter to the president of each company. Getting mistakes cleaned up on your credit report can take the tenacity of a bulldog-be persistent.
Another common credit problem is having too much consumer debt at the time you apply for a mortgage. The more credit cards, auto loan, and other consumer debt you rack up, the less mortgage you qualify for. If you’re turned down for the mortgage, consider it a wake-up call to get rid of this high-cost debt.