Your mortgage loan will not be approved if you have a poor payment history.
This includes those annoying book clubs that kept sending you dunning letters for books you returned.
No matter how unfair, any blemish on your credit report can cause the mortgage lender to refuse your loan request.
Part of your mortgage loan application fee is a $25 to $75 charge for the lender to obtain a copy of your personal credit history as reported by the main credit reporting agencies: Experian and Equifax.
Before you apply for a mortgage:
Get a copy of your credit report and correct any errors.
Experian (888-397-3742) and Equifax (800-685-1111) will both provide a copy of your credit report for under $10.
Write a letter to the mortgage lender and explain any credit problems you are unable to have removed from your report. For example:
Payments were late because your ex-roommate failed to forward your bills.
You were temporarily in a financial hole after your former employer went out of business.
Some lenders are more sympathetic
Shop for a flexible mortgage lender.
Ask if previous credit problems will torpedo your chances of getting a loan.
Consider a mortgage broker. A good broker knows which lenders will be most sympathetic and knows how to handle credit problems.
Explore a Seller financed mortgage loan. The Seller might not even check your credit report. A Seller who is anxious to sell will be more willing to overlook past credit problems.
Contract Package $14.20
Real estate forms & contracts to legally sell or buy a home. Download them in Microsoft Word format for Windows & Mac. Order now.
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Copyright Jan. 2006 by Audrie.com Corporation
Stone Mountain, Georgia Fax: 770-469-2180
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