Purchasing your first home is an exciting accomplishment, but it’s easy to let your exuberance lead you to making poor decisions during the process. According to the team at Diligent Credit Solutions in Hauppauge, NY, many first-time home buyers make credit mistakes that follow them for decades.
Below, these Long Island credit repair specialists explain the four worst credit mistakes a first-time home buyer can make:
Accepting a High Interest Rate Due to Poor Credit
Many first-time home buyers with poor credit have a difficult time finding a mortgage lender who will approve them for a loan. Consequently, they are tempted to agree to any loan terms a lender offers, even if they include a high interest rate. If you’re having a difficult time finding an affordable interest rate, consider enlisting a credit repair service and waiting to buy a home until your score has improved.
Disputing Everything on Your Credit Report
There are a myriad of credit repair myths floating around, and one of them is that disputing everything negative on your credit report will improve your credit score. The credit dispute process is designed to help consumers remove inaccurate data. It is dishonest to dispute valid data, and it will not permanently improve your credit score.
Letting Your Credit Score Lapse Before Closing
First-time home buyers often mistakenly believe that a pre-approval letter guarantees them the ability to obtain a mortgage. As a result, they allow their credit scores to slip before they close on the home. However, lenders pull credit reports ahead of closing, so allowing your score to drop could cost you the ability to buy your dream home.
Failing to Utilize Credit Repair Services
Finally, many home buyers never think to consult a credit restoration service about ways to improve their credit scores. The higher your credit score is, the more likely you will be to obtain pre-approval and a competitive interest rate from a mortgage lender, so you should begin the home purchasing process by visiting a credit specialist.
When you’re ready to buy your first home, contact the credit repair experts at Diligent Credit Solutions. Whether your credit is bad, average, or good, you will benefit from this firm’s credit education services. Call (631) 656-4300 to request a free consultation or visit their website to learn more.