The old saying goes: Two things in life you cannot avoid are death and taxes. Both are grim subjects and yet simple facts of life. Standing solidly at third is Credit History. Many of us in our 20's while livin' large get caught up in credit card euphoria of the...buy now pay later plan. It's a lesson that most young adults have to learn the hard way. Careless and irresponsbile payment of debts can be corrected but it takes a bit of work. Good credit history is crucial in getting a long term loan. A few of the most important factors when applying for a home loan are:

LATE PAYMENTS
For most people, problems with their credit report are likely related to late payments on a debt. If you were late one month in paying off your credit card, but otherwise have a good payment history, chances are most lenders won't be too concerned. But if you have a history of late payments you'll need to document the reasons why. A slow payment history won't necessarily get you turned down for a loan, but you may have to pay a higher rate of interest or otherwise prove to the lender that you can repay your loan in a timely fashion.

ERRORS ON CREDIT REPORT
Many people are surprised to learn that credit reports can often contains errors or inaccurate information. If this is the case with your credit report, you'll need to contact the reporting agency or creditor to have the problem resolved. This can sometimes be a slow process, so make sure to give yourself time to clear up the mistake.

BANKRUPTCIES AND FORECLOSURES
There's no getting around it, a bankruptcy on your credit report is not a good thing. But that doesn't mean you still can't obtain a loan. Even though a bankruptcy may stay on your credit report for seven to ten years, lenders will often consider the circumstances surrounding a bankruptcy (family illness, injury, etc.). Moreover, if you have reestablished good credit since the bankruptcy, a lender will be more inclined to approve your application.

To be in a position to take advantage of the low interest rates said to be coming very soon, good credit is a MUST! If you have any questions about how to clear up credit issues or need to be directed to a reputable lender, call me today.