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Your credit history is a major determining
factor in a lender’s decision to make you a mortgage loan. Recent amendments
to the Fair Credit Reporting Act (FCRA) now allow you to obtain a copy of
your credit report free of charge, one time per year.
Why is this important to you? If you are
planning to buy a home, it is important that your credit be in the best
possible shape prior to your purchase, so you can get the best
mortgage interest rate and terms possible. Homebuyers with better
credit get better interest rates!
It is not uncommon for many of the homebuyers we assist to have experienced
credit problems. When you attend a
Keystone Homebuyer Education Class, we will
discuss credit and its impact on your ability to purchase a home.
To obtain a free copy of your credit report, go to
www.annualcreditreport.com and complete the
request. You will be asked if you want a report from a choice of three
credit bureaus - Equifax, TransUnion, and Experian. You may request a
free report from all three at once, or stagger your requests. Since
these three bureaus obtain and report their information independently of
each other, we recommend that you request a report from all three.
If you are not comfortable requesting this information on-line, you can call
1-877-322-8228, or visit
www.ftc.gov/credit to obtain a form that
can be mailed.
Your free credit report will not include
your credit score. A credit score is a number between 300 - 850 that
indicates how good your credit is. High numbers indicate you are a
better credit risk. You may purchase your score when you request your
free report for a small fee. Credit scoring is covered in detail in our
Keystone Homebuyer Education Class.
When you have obtained your credit reports it
is important that you check them for accuracy and possible identity theft.
Unfortunately, identity theft (where someone else uses your name, social
security number, and other personal information to obtain credit) is
becoming a common occurrence, and reviewing your credit reports regularly
can provide you some safeguards.
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Down Payment Assistance Programs Brochure
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