Apply For Home Mortgage Loan Online
With Bad Credit - Things To Consider
By Carrie Reeder
So, you've found the perfect home. You've already
decided where to place each piece of your furniture inside the home, and
in your mind, all of your family photographs are hanging alongside the
stairwell. But wait- do you know that even if you believe that your credit
report is spotless, it could negatively affect your chances of getting
that home mortgage approval?
The credit bureaus handle hundreds of thousands
of credit reports, and it's only logical that they will make mistakes.
In fact, studies show us that there are some types of errors on at least
50 percent of all credit reports.
Could an error be lurking on your report?
Here's a simple step-by-step guide to ensure that
your credit report reflects exactly what it should.
Step One: Avoid a Bad Credit Report by Requesting
a Copy of It
Under the law, you are entitled to a copy of your
credit report from each of the three credit reporting agencies. You should
simply submit a request in writing or visit their web sites and request
Step Two: Check the Personal Information
Maybe your name is Jane Smith, but the agencies
have you listed as Jayne Smith. If you don't think that it matters, you
d better think again. If the agencies have a miss-spelling in your name,
the wrong address, reversed digits on your social security number, or
even wrong employer information, it could mean bad news for your report.
If the person who they have you confused with makes a late payment, then
it will appear on your report. What's worse, if they file for bankruptcy
or default on a car loan, it will take some time to sort out the erroneous
information once it's found its way onto your report. Avoid all of this,
and report any bad information now.
Step Three: The Credit Information
It may be too late, and you may find that there
are loans or other items on your report that you've never taken out. In
addition, you may find that late payments are on your credit report when
you're sure that you made them on time. If you find such erroneous information,
then you ll need to send the credit reporting agencies a letter explaining
the error, along with any proof or documents that you have that will back
up your claim. They are required to investigate your complaint and report
back to you with their findings.
It's important to do all of this before you apply
for a home mortgage. It will not only reduce the amount of time that it
takes to get an approval, but it could positively affect the interest
rate that you end up with.
the Author: To see a list of recommended bad credit mortgage loan companies,
visit this page: www.abcloanguide.com/lessthanperfectcredit.shtml.
Carrie Reeder is the owner of ABC Loan Guide. It is an informational loan
website, with informative articles and the latest finance news.