How to fix your credit for a mortgage loan?

How to fix your credit for a mortgage loan?

Purchasing a Home is the Biggest Financial Decision and Purchase in Your Life. Must Mortgages are Lent at 15 - 30 years which could be a lifetime in many cases. After the Economic Collapse in 2008 – 2009 Fannie Mae and Freddie Mac which back 85% of the Home Mortgages in the US, changed the playing rules which created a drastic affect on how Lenders will Loan Money To Consumers. With Different Regulations Lenders Requirements Changed and Became More Regulated over night, Now the minimum Fico Score Needed For a FHA Loan is Normally 620 or Higher Fico Score, 660 – 680 Fico Score For a Conventional Home Loan.

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How to fix your credit for a mortgage loan? Fist Step Always Check your credit reports and closely monitor your Credit Scores regularly Credit Repair Aid Can Show You How. A Credit Score is an algorithm that is formated by F.I.C.O company which sales the rights to their Fico Algorithm AKA Credit Score to Lenders and Banks. Your Credit Score (Fico Score is basically a math Problem which is derived by 5 different sections which are calculated by Fico to create and Generate a Score for every American Consumer with a Social Security Number. Credit reports are your credit references, as reported by your lenders; their is 5 separate categories which are 35% Payment History, 30% Debt, 15% Length Of Credit History, 10% New Credit, 10% Types Of Credit (Credit Cards, Auto Loan, Personal Loan, Mortgage) . Unfortunately, many lenders don’t update your credit report because they do not want to Pay the Credit Bureaus To update the Trade Line until you Dispute the item many negative items which report on your credit report are inaccurate, outdated, or non verifiable about your payment history which is 35% of your Credit Score (Fico Score). This is why it’s important for everyone to monitor their credit reports regularly and to dispute any information that is inaccurate by sending a Dispute Letter certified mail to all three credit reporting Agencies (Transunion, Equifax, Experian). Credit Repair Aid created this complete guide to show our members How to fix your credit for a mortgage loan.

After Checking your credit reports remember all 3; Check Your Credit Reports Today For Free) ( )

If You Notice that You Need to fix your credit report, Credit Repair Aid Created this Guide with step by step instructions to show you How to fix your credit for a mortgage loan.

Step 1: Request your free credit report from each credit bureau

Check Your Credit Reports Today For Free) ( )

Step 2: Check Every Single Trade Line (Individual accounts) on your credit reports carefully line by line. You want to check The Derogatory Items On Your Credit Report First make sure that every Trade Line is correct: If any item is Not Correct, or you disagree with that is reporting Derogatory should be disputed. Check each Tradeline and make sure that the Balances Due, Collection Accounts, Charge Off Accounts, and Late Payments which are reporting are correct…..

“Remember that credit report information comes from the companies who have accounts with you. The goal is not just to fix your credit report, but to make sure that your information is correct with the source so that it will be reported correctly to everyone who checks your credit references. Reviewing your credit report can help you discover and resolve those inaccuracies. Each credit report differs in how information is presented, but here’s a breakdown of what you’ll typically find:

• Personal  Identification (addresses, employment history, name, social security number)
• Types of Accounts (revolving, installment, loans, joint accounts, credit limits, debts)
• Collections (if any accounts went to collections)
• Public Records (about  financial obligations)
• Consumer Statement (such as a statement of dispute if you do not agree with your lender about the status of your account)
• Hard Credit Inquiries (showing you applied for new credit or services)
• Soft Credit Inquiries (showing requests made by lenders who sent you an offer or that you requested your own report — soft inquiries are shown only to you.

Each credit report differs in how information is presented, but here’s a breakdown of what you’ll typically find:

• Personal  Identification (addresses, employment history, name, social security number)
• Types of Accounts (revolving, installment, loans, joint accounts, credit limits, debts)
• Collections (if any accounts went to collections)
• Public Records (about  financial obligations)
• Consumer Statement (such as a statement of dispute if you do not agree with your lender about the status of your account)
• Hard Credit Inquiries (showing you applied for new credit or services)
• Soft Credit Inquiries (showing requests made by lenders who sent you an offer or that you requested your own report — soft inquiries are shown only to you)

As you audit your credit report, pay close attention to these areas:

Missed Payments
Your payment history makes up the biggest part of your credit scores, so any past-due amounts or late payments will damage your scores (especially missed mortgage payments). If you have any missed payments on your report that are incorrect, make sure to dispute the inaccuracy because it can make a big impact on your scores. You may need to talk to your lender to find out why your records do not agree about the payment.

Length of Time Using Credit (Depth of Credit)Many people don’t realize that older credit accounts with good credit history actually help you. It shows you have managed credit well for a significant amount of time. Consider the pros of cons before you close any accounts (if they are tempting you to overspend).

The Variety of AccountsHaving a mix of different credit accounts can help you because it shows you know how to manage different types of credit. Managing a car loan with a fixed monthly payment is very different from managing a credit card where you control the amount you owe and pay each month.

Recent Credit AccountsIf you’ve recently taken out a loan or credit card, you’ll want to make sure it’s appearing on your credit report. New credit accounts can signal risk (and could lower your scores at first), but the added credit mix and consistent payment history will likely improve your scores over time.

Amount of Credit
It’s important to make sure you’re using less than 30% of your available credit on revolving credit accounts. For example, if you have a $10,000 credit limit on a credit card – you never want to carry a balance over $3,000 because it can hurt your credit scores. The lower, the better. 

So while auditing your credit report, make sure the credit limit assigned on your revolving accounts are accurate – and the amount owed is under 30% of your credit limit. If not, consider requesting a higher credit limit on that credit card to lower your utilization rate. Even better, pay down your balances so that you are only charging what you can pay in full each month.

CREDIT TIP: If you notice any fraud, you can set a fraud alert right away which cautions lenders to verify your identity before opening any new credit accounts. It’s simple to set-up fraud alerts by using  these  direct links to Experian, Equifax, and TransUnion. “You can also freeze your credit reports for a small fee to prevent new creditors from accessing your report. However, freezing your credit reports means you will have to temporarily unfreeze them when you need services, which can be inconvenient,” says Sweet.

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