Real Estate: Cleaning Up Your Credit

As I mentioned in my blog recently, cleaning up your credit is crucial when it comes to getting an affordable home loan. You want your report to make you seem like a trustworthy and responsible adult who will pay your bills on time, so that lenders are more likely to give you a better rate. Once you’ve gotten a copy of your credit report, and worked with creditors to clean off any negative items, here’s what you have to do next:

Get Written Confirmation of Agreements
Once you’ve gotten creditors to agree they will wipe the negative item off your report, ask for a letter by mail (or fax) confirming that they are correcting the negative information. You’ll need this letter to ensure that they do follow up on their promise to correct the negative item, and you also may also need it in case you are applying for a mortgage before the changes take place. Your lender will need this documentation.

What to Do if Your Creditor Won’t Remove an Item:
Occasionally, the creditor will refuse to remove the negative credit item. If the item is definitely not yours, call the credit bureau immediately. Only discuss the negative items that are inaccurate – not any of the ones that are accurate. If you confirm any accuracy on any of the items, you can no longer dispute it again in the future by call or mail. For remaining items, dispute them through mail by writing directly to the credit bureaus. Write a letter that includes all necessary information – your name, social security number, address, disputed accounts and account numbers. Be sure to sign the letter as well. All you need to say is that you are disputing the data the way that it appears on your credit report and explain why.

Although these things may seem tedious and frustrating, it will make it all worth it if it gets you closer to getting a great home loan. Any questions? Just email me at beverly.corsmeier@cbws.com!