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Apply For Home Mortgage Loan Online With Bad Credit - Things To Consider
By: Carrie Reeder
So, you’ve found the perfect home. You’ve already decided where to place each
piece of your furniture inside the home, and in your mind, all of your family
photographs are hanging alongside the stairwell. But wait—do you know that even
if you believe that your credit report is spotless, it could negatively affect
your chances of getting that home mortgage approval?
The credit bureaus handle hundreds of thousands of credit reports, and it’s only
logical that they will make mistakes. In fact, studies show us that there are
some types of errors on at least 50 percent of all credit reports.
Could an error be lurking on your report?
Here’s a simple step-by-step guide to ensure that your credit report reflects
exactly what it should.
Step One: Avoid a Bad Credit Report by Requesting a Copy of It
Under the law, you are entitled to a copy of your credit report from each of the
three credit reporting agencies. You should simply submit a request in writing
or visit their web sites and request a copy.
Step Two: Check the Personal Information
Maybe your name is Jane Smith, but the agencies have you listed as Jayne Smith.
If you don’t think that it matters, you’d better think again. If the agencies
have a miss-spelling in your name, the wrong address, reversed digits on your
social security number, or even wrong employer information, it could mean bad
news for your report. If the person who they have you confused with makes a late
payment, then it will appear on your report. What’s worse, if they file for
bankruptcy or default on a car loan, it will take some time to sort out the
erroneous information once it’s found its way onto your report. Avoid all of
this, and report any bad information now.
Step Three: The Credit Information
It may be too late, and you may find that there are loans or other items on your
report that you’ve never taken out. In addition, you may find that late payments
are on your credit report when you’re sure that you made them on time. If you
find such erroneous information, then you’ll need to send the credit reporting
agencies a letter explaining the error, along with any proof or documents that
you have that will back up your claim. They are required to investigate your
complaint and report back to you with their findings.
It’s important to do all of this before you apply for a home mortgage. It will
not only reduce the amount of time that it takes to get an approval, but it
could positively affect the interest rate that you end up with.
About the Author:
To see a list of recommended bad credit mortgage loan companies, visit this
page: www.abcloanguide.com/lessthanperfectcredit.shtml. Carrie Reeder is the
owner of ABC Loan Guide. It is an informational loan website, with informative
articles and the latest finance news. |
