Today, three principal factors determine the loan amount that you qualify for to purchase a home. They are: (1) the amount of verifiable income that you earn and report, (2) the amount that you have saved as a down payment and (3) your credit scores as reported by three major credit reporting agencies – Experian, Equifax and TransUnion.

This web page is dedicated to discussion of the third factor – your credit scores – and, if need be, how you can make them significantly better.

Everyone who has ever applied for credit knows that their credit score is very important when applying for a loan. Typically, lenders establish minimum credit scores that you, the borrower, must have in order to qualify for a given loan product. Generally speaking, high credit score borrowers are rewarded with lower interest rates.

Common sense tells you that the employee of your lender (the "loan underwriter") who determines if you qualify for the loan that you applied for will have an easier time approving your application if you have a high credit score.  Cleaning up your credit reports will raise your credit score.

Unfortunately, rather than apply for a mortgage that they know will be denied, or which will cost them dearly due to the interest rate that they will be required to pay, many borrowers with low credit scores take themselves entirely out of the home buyer’s market. If, as a result of illness, job loss or other misfortune you are saddled with a poor credit report, it is important for you to know that it may be possible for you to dramatically improve your credit scores without the payment of upfront fees or significant expense.
Reputable credit repair agencies, with a working knowledge of the Fair Credit Reporting Act, know exactly how to legally require credit bureaus to delete inaccurate, unverifiable, misleading and obsolete information from your credit report. In many instances, validly reported items – such as charge-offs - must be legally removed. The reason is that credit bureaus must respond to challenges of objectionable items in a specified legal time frame. If they don’t, the item must be deleted from your report.
Do you honestly believe that credit bureaus have the time or manpower to research your challenges? Do you honestly think that credit bureaus are willing to pay the expenses necessary to investigate and respond to a multitude of challenges?
This is NOT to say that once removed, you cannot be sued for the item. However, once an item is removed from your credit report, it should never be placed on it again – even if you are sued for the item and lose.

BANKRUPTCY AND FORECLOSURE – content to be added

WARNING: DO NOT DEAL WITH CREDIT REPAIR AGENCIES THAT CHARGE UP-FRONT FEES OR RETAINERS FOR WORK TO BE PERFORMED IN THE FUTURE.
DEAL ONLY WITH REPUTABLE COMPANIES THAT KNOW THE RELEVANT LAWS.