Credit History – Fears and Remedies

Many prospective home buyers are fearful that their credit history could affect their ability to get a mortgage. Most times this fear is unfounded or easily remedied.

One of the first steps you should take as you enter the housing market is to order a credit report. In so doing, you can verify the accuracy of the report and take steps to correct any inaccuracies.

If you have had credit problems, discuss them with your lender. Be frank and honest. All lenders have experience in working with credit problem challenges. There are often very legitimate reasons for credit problems, with illness, unemployment and divorce among the more common. If you have taken steps to remedy the issues, the lender will want to work with you. At the very least, the lender can set you on the right path to prepare for homeownership down the road.

Be aware that it can take six months to a year to repair your credit.

If you’re not sure you’ve established enough credit history, seek the advise of a lender to see what qualifies as credit history.