Getting Your Credit Report Information

If you have a mortgage, bank account, credit card or some other type of loan, you will have a credit rating… guaranteed! The companies that are involved with you in these financial matters report your credit information to the three major credit companies: Equifax, Experian, and TransUnion.

There are also other sources of public information that are used to generate your credit rating. These include, but are not limited to, tax liens, lawsuits, bankruptcies and judgments. All of these affect your credit score.

When you’re making a large purchase, such as a home, your credit rating is very important to you. The decision to loan you money and the amount of interest you may pay are tied to your credit score.

Each of these three credit companies generates a credit score for you. The credit scores will differ from company to company. The lender will look at all three scores. They have pre-determined guidelines on what they may lend, depending upon your credit score. The bottom line is this… The higher your credit score, the lower your payment will be.

You need to take a little time to learn about your credit scores. You need to know how the company derives your score and the affect it will have on your chances of getting a loan to purchase that new home.

Credit reports normally contain five sections:

1. Details of your personal credit history.
2. The names of anyone that has reviewed your credit history.
3. Any information you’ve provided to the credit company.
4. Your personal identification information.
5. Additional comments and notes about your credit history.

Every state will differ on the requirements it sets for loans. You need to find out what requirements your state requires. Ask you real estate agent. He/she can help you find a competent lender that can help you with this. Remember, when you apply for a home loan, your lender will look at the credit reports from all three companies. The lender will use it to determine your credit worthiness.

If you have some credit problems, a good lender can help you clear it up. He/she can outline a step by step plan.  Be sure to follow the plan carefully. When you do, it will improve your credit score and help you get a mortgage loan.

It is very important that you work with a full time professional real estate agent. He/she will have a team of experts ready, waiting and capable of helping you with your credit report, as well as all other phases of the real estate process. As you work together, it will save you a lot of time and money… plus, it will make that dream home a reality.