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"Buying a Home is Possible! (Even When Your Credit is Less than Perfect)" 

by Julie Frost 

As parents, we want to provide a safe and nurturing home for our children. But many Americans believe that home- ownership is simply not possible because of poor credit.

The problem with that assumption is that your credit may not be as bad as you think, and even if it is, you may be able to fairly easily raise your credit score. You need a FICO score of 620 in order to qualify for a prime loan at today's conventional rates. But if your score is less than that, do not despair.

First of all, find out what your credit really looks like. Everyone is allowed to pull their own credit history once per year, without marking their credit. Simply call or write to the three major credit reporting agencies and ask for a copy of your credit report.

They are: Equifax (800) 685-1111 or www.equifax.com; Experian (888)-EXPERIAN or www.experian.com; Trans Union (800) 888-4213 or www.transunion.com.

You should do this before your apply for a home loan or to get pre-qualified for a home loan. That way, if there are any inaccuracies on your report, you can get them removed. The truth of the matter is, approximately 29% of Americans have inaccurate information on their credit reports.

It's also fairly easy to remove inaccurate information from your credit report. You simply write to the credit reporting agency which has listed inaccurate information on your credit history (with your full name and address, social security number, and the account number which is inaccurate) and explain to them why you feel this information is incorrect. A simple, polite note may be all you need to improve your credit score.

I myself did that recently when an auto loan appeared on my credit report for a car I never owned, that was purchased and owned in a state 1500 miles away from me that I had never even visited. The person who did buy the car was frequently not making payments on time, and so, by removing that one credit inaccuracy, I raised my credit by nearly 30 points.

But say everything on your credit report is complete and accurate. What if your score is still low? There are many techniques that are legal and fair, that can be used to improve your credit enough to qualify for a home loan. There are several good books on the subject at your local library for free. You don't have to live with the shame of a bad credit score.

But say your credit is okay, and you decide you'd like to get pre-qualified for a home loan, before you start looking for a house, to see how much you qualify for. Don't make the mistake of "shopping for a great rate." Sure, you can call around or check out some web sites, but if you use your social security number those businesses will, in all likelihood, pull your credit report. Each time they do, your score goes down several points. Get with a lender you feel comfortable with and whose rates are reasonable, and stick with them, so your score isn't brought down by "loan shopping."

Just ten years ago, if you had poor credit, there was little or no hope for you to get a home loan. But times have changed, and even with less-than-perfect credit, you can now get a mortgage at a reasonable rate. So if you and your family have given up on the dream of home ownership, don't! There may be hope for YOU.

-- AllCreditOK.com helps introduce people with less-than- perfect credit to lenders who are more than willing to help them get the home of their dreams (and even improve their credit score!) If you would like to live the dream of home- ownership, please visit: http://www.AllCredit.OK.com/

This article provided by the Family Content Archives at: http://www.Family-Content.com