It is said that the American dream is home ownership. While there is usually more to it than that, owning a home is one thing that most people aspire to, especially when they have children to which they want to give a secure and lasting base. Owning a home is simple if someone wills it to you, or if you simply have enough money to buy one outright, but for many families, it is so much more complicated than that. In fact, so many have bad credit despite their best efforts to stay ahead of the game, and feel that home ownership is out of the question for them. If you are one of these people, learn about credit repair so that you too can have a place to call your own.
Don’t let the housing market get you down if you want to have a home of your own. Some people have homes that have lost half of their value, so they feel that they are paying for nothing now, but those same homes can regain in the future. If you are worried about your bottom line and making money with your home, this is not the best time. However, if you just want something you can stay in for life that is your home, those things don’t matter as much. You do have to know about credit repair, however, if you want that home to be yours.
Your credit is a history of what you have paid, and what you have not paid. There are many that have a bad credit rating simply because they have gone through an illness. Though some lenders are more forgiving when it seems all you owe are back medical bills, lenders won’t give you a loan if your credit score is under a certain number no matter what your issues may have been. A general guideline is 620 at a bare minimum, but each lender has their own set of standards. You have to know about credit repair to get your number above that if that is your main problem.
One thing to know about credit repair is that you have to pay off those old bills. Know your state’s statute of limitations. Your oldest bills may fall off your report soon, so concentrate on the newer ones. Just one late payment sent to collections can knock a hundred points off your score if you started out high. Take your latest collection accounts and pay them off as soon as you can and work your way backwards. Avoid settlement amounts if you can. Paid in full is the best listing you can have.
Another thing to know about credit repair is that you want to pay down high interest rate credit cards. Having one or two cards that are up to date and not maxed out helps your credit, but having a ton of them that are topped out can hurt. You need good credit as well as a clean record of paying off your debts. Revolving credit looks good as long as it is not a high percentage of your income. Talk with a mortgage broker about your options, what you can change and what you should leave. You’ll be on your way to home ownership in no time.