Improve Your Credit Score Those looking for a home should check their credit score before spending their valuable time house hunting. There’s nothing worse than learning your credit report contains a late payment that could prevent you from buying a property. The higher your credit score, the better. A score of at least 620 will give you a good chance to secure a home loan; 720 should qualify you in most cases. That being said, a lower score doesn’t mean you won’t be able to finance a home. It simply means some credit repair is needed. Credit repair starts with your credit report. You can request a free copy of your credit report annually from the Federal Trade Commission at “AnnualCreditReport,com.” Once you receive it, check it thoroughly for errors. If you uncover errors call the Company responsible and get them fixed. Try disputing the account discrepancy as “not mine.” Once you’ve fixed any errors, if there are still negative marks you can definitely take steps to fix them. For example, if you’ve missed a payment, call the creditor to explain and ask them to erase the negative listing. A well-documented letter of explanation can be of great help. There’s no guarantee a creditor will remove the negative mark, but if you’ve been a good customer through the years, this method has proven to be successful. A very common problem we’re seeing today is student loan defaults. If this applies to you, you can enter into a “rehab program,” which will get your account back on track after 12 months. It may not be the quick fix you need to buy a home right now, but the sooner you start the sooner that issue will be resolved. One way to boost your credit score is to have an older family member, with a sound credit rating, add you as an authorized user on a credit card. You don’t even need the card in your possession. Simply being added to the account will increase your score! With today’s loans requiring higher credit scores, it’s never too early to start fixing credit challenges.

from The Newberry Team - Los Angeles & Orange County Real Estate http://ift.tt/1oioFzX