My credit sucks and I want to buy a house!

Are you at a point where you want to make a large purchase, but your credit is standing in your way? Many individuals take credit for granted until the need to make a purchase of a large item, such as a car or home. Keeping up with your credit and maintaining a high credit score, is important and not to be taken for granted.

GET YOUR CREDIT REPORT. The first step is to pull copies of your credit reports from the three credit reporting agencies. Those agencies are Experian, Trans Union and Equifax. You have access to your credit report once a year for free. You will need t review your credit report for accuracy to determine if there are any errors. Are there erroneous charges on there? Are there outstanding bills that you paid already? If you find errors you need to contact the source of the error and have the information corrected. You may not be able to begin the process until your credit problems have been cleaned up. This might require the services of a credit counselor or credit repair agency.

Once you have cleared up any discrepancies you can now proceed to the next step: Reviewing what kind of home loans you qualify for. When you buy a home the lender will pre-qualify you to give you an idea of what you can afford. Many factors will enter into the home buying decision. The lender will assess your credit worthiness by reviewing credit card balances, payments, student and other consumer loans. It important to review recommendations for problem areas that you need to clear up before beginning the home buying process.

Once you have your magic number (loan amount you qualify for), you can start browsing for your new home! By knowing your loan amount from the start, you are able to narrow down your home search and save precious time on visiting only qualifying options.

The day finally arrives and you are ready. You sign up with a Los Angeles Real Estate Agent to get the process started. This agent will introduce you to a mortgage broker they work with or one of your choosing. If you are a first time buyer, you should attend a first time homebuyers workshop to become knowledgeable about the process.

You will need to obtain a pre-approval letter from the lender when searching for properties. Hopefully you have your credit in order with the recommendations that have been discussed. Keep in mind that monitoring your credit should be ongoing.

Best of luck!

Elizabeth Marquart is Southern California’s real estate expert and home improvement project manager of choice. She always provides reliable  and diligent real estate representation-all with the highest degree of integrity. Visit www.ElizabethSells.com or contact her for any real estate and home improvement questions by calling (310)246-0888 or at AskElizabeth@ElizabethMarquart.com.

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