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April 10, 2012

Buying or Selling a Home

Financing a Home Purchase

I want to buy a home but my credit history is poor. Is there anything I can do?

Yes, there are several options. First, before you attempt to buy, you will want to improve your credit record by paying your bills on time and by curtailing your borrowing.

Second, credit-reporting agencies can and do make mistakes. Major credit-reporting companies such as Equifax, Trans Union, and TRW maintain computer files on your financial history. The law gives you the right to examine your own file. A summary of the report must be made available to you free of charge. However, there is a fee if you request a full credit report.

If you believe your credit report is in error, you may challenge the report by explaining the error in writing. The information must be verified by the agency if it is kept in the report. If you discover inaccuracies and you can prove them, you can demand that the agency correct them within a reasonable period of time. If there are no errors, you have the right to include a letter of explanation of up to 100 words in your report. The agency must include your statement, or a clear and accurate summary of it, in all future reports.

>>How much money will a lender provide for my home purchase?
>>What do I need for a down payment?
>>What will I need for closing costs?
>>Should I pre-qualify for a loan?
>>I want to buy a home but my credit history is poor. Is there anything I can do?

Practical Law Home | Buying or Selling a Home | Basics of Buying a Home
Basics of Selling a Home | Why Real Estate Is Covered By Special Laws | Real Estate Brokers
The Purchase Contract | *Financing a Home Purchase* | The Closing | The Fair Housing Act
Where to Get More Information