Home Buyer Credit Tips to get the home you really want.

As a home buyer credit scores can make the difference in your interest rate or even getting your mortgage loan approved. Like many of our clients, you may be a home buyer interested in improving your credit to buy a new home. Unfortunately your credit report may show a previous foreclosure, short sale, deed in lieu of foreclosure, or even a bankruptcy. Or you may be experiencing difficulties paying your current mortgage and need to know "what's the credit impact of alternatives to foreclosure?

Legal Strategies to Improve Credit

One Home Buyer Credit Improvement Tip is to pay down the balances on your revolving credit card accounts to 20% of the credit limit before applying for a mortgage loan. This credit improvement strategy can help to boost your credit score by several points.

Also avoid applying for any new credit at least a year before making your mortgage loan application. Too many inquiries within a 12 month period can lower your credit scores.

To learn more about how to improve your credit scores, complete the form below to receive your free download of my eBook titled "What Every Homebuyer Should Know About Credit Scores".

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If you are a current home owner experiencing difficulties paying your mortgage, carefully consider your options for debt relief. Whether you do a loan modification, short sale, deed in lieu of foreclosure, or bankruptcy, know that each may have varying affects on your ability to buy a home in the future. In either event, there are still legal credit improvement strategies available to help you.

RESPA

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For example, the Real Estate Settlement Procedures Act and Truth in Lending Act are just two examples of credit laws that give you rights regarding mortgage lending. RESPA can be used to send your mortgage lender what's called a Qualified Written Request (QWR) letter demanding information and documentation regarding your mortgage.

If you were a home owner with a reasonable belief that your mortgage lender may not have complied with all of the Truth in Lending Act disclosure requirements when you originally applied for your ARM loan or your interest only mortgage loan, you may consider sending the lender a QWR for the original documents and mortgage loan statements to review the calculation of fees, interests, legal notices, terms and conditions, etc. for compliance with the truth in Lending Act or RESPA.

Because most mortgage loans are assigned from one lender to another, during the term of the loan, there's a good chance your mortgage lender may not be able to locate the documents or provide you with the information you are entitled to receive under RESPA. If they cannot comply with the credit laws, any non-compliant credit information must be deleted from your credit reports. The credit laws were enacted for your protection.

The Burden of Proof is on the Credit Bureaus and Creditors

Remember, even as a home buyer credit bureaus and creditors have the burden of proving they are in compliance with the credit laws when reporting or furnishing your personal credit information. So if they cannot prove the credit information they are reporting or furnishing is accurate, complete, or timely, you may demand the non-compliant credit item (i.e. foreclosure, late pays, short sale, etc.) be deleted from your credit reports.

Get credit information and decide for yourself, who to trust
to help legally improve your credit.







Credit Improvement Tip#2

"Why It's Not in the Credit Bureau's Best Interest to Help You Fix Your Credit"



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