Credit Repair To Qualify For Home Loan

Is Credit Repair To Qualify For Home Loan Recommended?

When applying for a mortgage loan, there are three factors that are very important:

  • First is income.
  • Second is debt to income ratio.
  • And third is credit scores.

Credit Repair To Qualify For Home Loan: Credit and Credit Scores

Mortgage lenders want to make sure that your are able to afford your monthly mortgage payment and that the mortgage payment will be timely.  In a way they are predicting your future creditworthiness and future payment ability by combining and analyzing the three factors.  Credit scores are taken seriously because it shows your credit history on your past credit payments.  A higher credit score means a lower mortgage rate and costs for a home buyer or a refinance mortgage loan client.  For those who have errors on their credit report, it is strongly suggested that they either hire a credit repair company or repair their credit repair on their own.

Credit Repair and Credit Repair Companies

Whatever a credit repair company can do, you can do it yourself.  However, many folks do not want to be bothered with disputing their erroneous or negative credit so they hire a credit repair company.  Credit repair should be taken seriously and every consumer should monitor their credit at least once a year.

Credit Repair To Qualify For Home Loan: Repairing Your Own Credit

We have covered many blogs about credit repair and how to repair your own credit.  We will be blogging more on credit repair in future blogs.  As for credit repair companies, do your due diligence on which credit repair company you hire.  Ask the credit repair company for references.  Referrals are probably the best route to take in hiring a credit repair company.  You do not want to hire a credit repair company that just takes your money and let your file just sit.

Credit Repair Takes Time

Credit repair does take time.  You cannot delete erroneous credit items or negative credit items overnight.  It might take several months if not over a year for a consumer to dispute their credit.  Bankruptcies, judgments, collections, tax liens, and charge offs can be deleted from your credit report by disputing them.  Even if those negative items are correct, you can still dispute them and if you get lucky, those items can and often times do get deleted.  However, even if judgments, bankruptcies, and foreclosures get deleted from your credit report, you need to disclose them on your mortgage application.  Why do credit repair if you still have to disclose them?  The main reason is because it gives you a higher credit score by having derogatories removed from your credit report.

We are still in the process of investigating some reputable credit repair companies and will eventually recommend a few in our future blogs.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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