Thinking of getting a mortgage? Check your credit score.

June 19th, 2019 by Hilary
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Thinking of purchasing a house or refinancing your home?   

Your credit score plays a significant role when applying for a mortgage because it helps lenders determine how likely you are to repay your debts.  According to recent research, you will need a credit score of 580 or higher to secure a Federal Housing Administration loan to purchase a home.  However, other loans may not accept a score below 620.  Ultimately, your credit score could determine what kind of house you can buy, regardless of how much large of a down payment you can make. 

For current homeowners, second mortgages and home equity lines of credit are a way of tapping into the cash equity of your home for home improvement projects, tuition, or other large expenses.  While second mortgages and home equity lines of credit are guaranteed by your home, credit scores are still an important factor in determining how much will be lent and the interest rates.  As a result, a lower credit score could result in a higher interest rate or the outright rejection of your application. 

Check your credit report before applying for a mortgage, second mortgage, or home equity line of credit. 

It’s important to know your score before applying for a loan so that you can make a financial plan.  Moreover, if you find an error on your credit report, you can then resolve it with ample time.  You can obtain free annual credit reports from each of the three main credit bureaus (Equifax, TransUnion, and Experian) at www.annualcreditreport.com 

What can you do if you find an error? 

Perhaps you find that your credit report contains some outdated information, accounts opened by someone with a similar name, or signs of identity theft.  If you find any mistakes on your credit report, you must correct them as soon as possible, especially if you are planning to buy a home or thinking of refinancing your property. 

First, you must contact the credit reporting agency (CRA) that is reporting the mistaken information.  You can write a credit report dispute letter to the CRA, and they will investigate and respond within 30 days.  You must include copies of all relevant documentation.  For example, if you are a victim of identity theft, this may be a copy of a police report. 

If you have tried to dispute your credit report errors and the CRA has not corrected them, you may need to take legal action. 

Hire The Consumer Law Firm of Francis & Mailman to Dispute Credit Report Errors 

Credit report errors are challenging to fix, and if your dispute goes unresolved, you may be entitled to damages.  The Consumer Law Firm of Francis & Mailman, P.C. has successfully handled thousands of consumer credit cases.  If you find errors in your credit report and cannot get them fixed, fill out our form or call us for a free case review.  Don’t let a credit report error stand in the way of getting your dream home! 


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