Avoid Common Pitfalls When House Hunting
Part 1: Check Your Credit Report
Buying a house is one of the most exciting times in a person’s life and signals the start of a new chapter. Due to financial considerations, time constraints, lack of patience or general lack of knowledge, there are many common mistakes that first time homebuyers make. Many of these mistakes, however, are avoidable.
It’s no secret that credit is a huge issue for anyone looking to purchase real estate. Unless you have a chunk of cash sitting around waiting to plunk down at the closing table, you will need to apply for a mortgage. The recent credit market debacle has made the guidelines even tougher than ever before; banks are no longer taking chances. If your credit report raises eyebrows, it’s likely your ability to get a mortgage, at an interest rate that is economically viable, will be seriously hampered.
Therefore, check your credit report and step up to the plate when it comes to erasing any blemishes.
If you have missed payments, whether purposefully (because you didn’t have the money at the time to pay) or by accident (you missed the deadline), your credit report will tell the tale.
Mistakes happen. Creditors report inaccurate information and the credit companies make mistakes, too, when updating credit reports. You may have erroneous information on your report that is affecting your credit score.
Obtaining your credit report is easy. In fact, everyone is entitled to review their credit report for free once every 12 months, according to the. Fair and Accurate Credit Transaction Act (FACT), signed into law in 2003. All you have to do is visit www.AnnualCreditReport.com, call 877-FACTACT, or print out a request form from www.annualcreditreport.com and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
Since all three agencies, Experian, Equifax and TransUnion, record information differently, it’s important to check all three on a regular basis. . If your credit isn’t great but the reports are accurate or if you find errors and need assistance getting them corrected, we can help. Call our offices today to speak with an experienced lawyer.
The attorneys at Posternock Apell, PC are highly experienced and trusted real estate attorneys serving New Jersey and Pennsylvania. If you’re interested in buying or selling a home, contact us today.