Cincinnati Home Buying Credit Repair

Repairing your credit to buy a home is important and sometimes necessary if you have bad credit or a low credit score. It is rare that people make it through life without making any credit mistakes. There are several ways to improve your credit score if you are looking to buy a home. The worse that your credit score is, the more difficult it will be to buy a home, so before you go shopping, make sure that you have worked on your credit and know some of the ways that you can still buy a home even if your credit is less than perfect.

    Know Your Score

    Getting a copy of your credit reports and knowing what your credit score is are necessary first steps to buying a home and repairing your credit. Check that the items that are listed on your report are correct and dispute any errors that you can find. After you find out where you stand, work to improve your credit. Pay off debts and get items removed from this report to improve your credit score. This process can take awhile but will be worth it when you are ready to buy your own home.

    What Lenders Look For

    When you apply for a loan from a lending company there are several things that they are looking at when deciding whether or not to approve you for a home loan. First, they will verify your identity and take a look at your employment history. Lenders will also be able to see if there have been any inquiries made to your credit like if you applied for a credit card or a vehicle loan. They will also see how you have handled passed debts. If you have late payments or high credit accounts, they will know. They can even see if you filed for bankruptcy or have any foreclosures.

    Seller Financed Loans

    If you have done all that you can within reason to raise your credit score but you are stillhaving a difficult time getting approved for a home loan, you may see if there are any homeowners that are offering financing options. A seller who is financing your loan may not check your credit and will probably be more flexible than the bank about how the home is purchased. If a homeowner is eager to sell, you may be able to come to an agreement that benefits both of you.

    Get Pre-Approved

    Before you even begin to shop for homes, you could see what kind of loan you might be able to be pre-approved for. This can increase your chances of being approved whenever you do find a home that suits your family and your budget.