Buying a house is something that many people dream about. One of the keys to obtaining that dream home is a clean credit report. If you are facing less than ideal credit, there are some things you can do to improve the situation. Real estate broker Bethany Lydem at Stone Crest Realty in Thomaston, CT, shares with you some advice on how to rebuild your credit and get one step closer to buying a house.
A Guide to Improving Credit Before Buying a House
Order Your Credit Report & Credit Score
The first step to improvement is knowing where you are. Obtain your credit report and score from all three credit bureaus. They each contain different information, so it is important to have all three on hand during this process.
Check for Discrepancies & Dispute
Discrepancies happen regularly. The first item to check is your identification, specifically your name, address, and Social Security number. If any of these items are incorrect, you may see accounts on your report that don’t belong to you. Next, check all of the accounts. Verify that they belong to you and that the balances are correct. An incorrect balance could affect your debt-to-income ratio, which could impact your loan amount when buying a house. If you’ve identified any errors, the next thing to do is to dispute them with the credit bureaus. Each credit bureau has procedures for handling errors and can provide you with information on how to do this.
Document & Follow Up
Continue to monitor your credit report to ensure that incorrect items have been removed. Keep documentation of letters you have written, whom you have spoken with, and dates of all communication. Maintaining proper documentation can help you keep track of things to ensure all corrections have been made.
Following the above suggestions, you can successfully rebuild your credit and be on your way to buying a house. If you are looking for a trusted real estate broker to help you begin your search, trust Stone Crest Realty. Bethany provides expert advice to guide buyers through the entire real estate process. To see her listings, visit her Zillow® and Realtor.com® pages. Call her today at (860) 283-2225 or visit her online for more information.