RE/MAX Real Estate Guide and FAQ - Questions and Answers for Real Estate Mortgages and Financing.
RE/MAX Valley Real Estate, Boardman, Ohio

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RE/MAX Valley Real Estate

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RE/MAX
Valley  Real Estate
1006 Boardman - Canfield Rd.
Boardman. Ohio
(330) 629-9200

RE/MAX Real Estate FAQ - Buying Your Home, Working With A Real Estate Agent

Your Mortgage - Questions and Answers
'Credit'

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Will bad credit prevent someone from getting a home?
There are numerous types of credit report problems (which may or may not be your fault) that would cause a lender to reject your application for a loan. Such problems include:
  • missing a credit card payment
  • defaulting on a prior loan
  • filing for bankruptcy in the past seven years
  • delinquent taxes
  • a judgment filed against you (perhaps for non-payment of spousal or child support or a tax lien)
  • any collection activity.

If you feel that your credit report is wrong, experts say it's best to take it up with the organization or company claiming you owe them money. But if you've been late paying your bills, regroup by paying in full and on time for six months to a year to prove to the lender that the late payments were an aberration.

See >> "What do I do about bad credit?"

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What do I do about bad credit?
There is no fast and easy way to repair damaged credit that took months or years to occur. The law allows negative information to appear on an individual's credit record from 7 to 10 years.

The first step to repairing bad credit is to see just what is in your credit report. Under a new Federal law, you have the right to receive a free copy of your credit report once every 12 months from each of the three nationwide consumer reporting companies. To request your free annual report under that law, you go to www.annualcreditreport.com.

You can request copies of your own credit report from the three major credit reporting agencies:

The bureau also should provide instructions on how to read the report and how to dispute any inaccuracies it contains. If the credit report is correct, take care of any outstanding delinquent obligations first.

If your credit report is correct, take care of any outstanding delinquent obligations first. Lenders usually won't consider any borrower who has had a delinquent payment in the past year.

While some people have rebounded from a bankruptcy or  foreclosure to buy another home within several years, credit problems stemming from either can continue much longer for others.

Real estate experts say you should be candid with your lender in discussing these issues. If your bankruptcy resulted from losing your job due to your employer's financial difficulties, a lender probably will look upon your situation more favorably than if your bankruptcy was caused by over-extended credit cards.

Resources:

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What do I do if I get turned down for a loan?
Increasing numbers of loan applicants are finding ways to buy their own home despite past credit problems, a lack of a credit history or debt-to-income ratios that fall outside of traditionally acceptable ranges. Ask the lender for a full explanation, then appeal the decision in writing.

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Where do I get a copy of my credit report?
See "What do I do about bad credit?"

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What if there is a credit reporting mistake on my report?
See "What do I do about bad credit?"

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Where do I get information on consumer credit laws?

For information on consumer credit laws,

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How long do bankruptcies and foreclosures stay on a credit report?
See >> Real Estate Guide: Your Mortgage - Bankruptcies, Foreclosure, and Credit, How long do bankruptcies and foreclosures stay on a credit report?
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