Mortgages
and Credit Reports
Many
home buyers are very worried about how their credit report will affect
their ability to buy a home. We even heard one story that an applicant
was denied a mortgage because he had returned a rented videotape late!
Of
course, that could never happen. Most people will not need to worry
about the effects of their credit history during the mortgage process.
However, you can be better prepared if you get a copy of your credit
report to review before you apply for your mortgage. That way, if there
are any errors you can take steps to correct them before you make your
application.
If
you have had credit problems, be prepared to discuss them honestly with
a mortgage professional and come to your application meeting with a
written explanation. Responsible mortgage professionals know there can
be legitimate reasons for credit problems, such as unemployment, illness
or other financial difficulties. If you had a problem that's been corrected,
and your payments have been on time for a year or more, your credit
may be considered satisfactory.
