How to Get a Home Loan with Credit Repair - Improve Credit, LLC

How to Get a Home Loan with Credit Repair

by Nov 5, 2020Credit Consulting

Repairing your credit to be able to purchase a home can be a big, daunting task. Although the biggest credit repair strategy, (paying down your debt) falls on you, there are reputable credit repair services, such as Improve Credit, available to you that are ready to help.

Here at Improve Credit, our credit repair consultants are knowledgeable, caring and dedicated to helping you get back to financial freedom.  Our team offers personal credit repair to our clients where we will provide a customized credit restoration plan.  When selecting a credit repair service agency, choose one with proven results.  Improve Credit has surpassed the $25 million mark for total savings for our clients, including mortgages and car loans.

Here are some ways to repair your credit to buy a house:

  1.  Beef Up Your Payment History – Did you know that 35% of your credit score is made up of your payment history? Simply put, the absolute best thing you can do to fix your credit to be able to purchase a house is to pay your bills on time.  Although late payments cannot be magically erased from your credit report, a history of timely payments take precedent and can help to have a positive impact on your credit.  Late payments will eventually “fall off” your credit report after 24 months of on time payments.  In the meantime, do what it takes to ensure you are paying all of your bills (not just credit cards – electric, water, garbage, student loans, medical bills, etc.) in a timely fashion.  Consider our credit repair services to help you develop a personal plan to solve your financial problems – it’ll pay dividends when it comes time to purchasing a home.

  3. Erase Credit Card Debt – When it comes to using credit cards, the best rule of thumb is to not exceed using 50% of your credit limit. This will show lenders that you’re managing your debt and finances well.  If you’re repeatedly going over that 50% credit utilization range, creditors may get concerned that you will not be able to pay the bill and that your finances may be in disorder.  If paying off (or down) your credit card debt each month is not in the cards for you right now, consider borrowing a small percentage of your revolving debts while shopping for a home loan.  Use any extra money to go towards paying off your debt.  If you are able to pay off all credit card debt, your credit score can improve by 30% in just a few months … so get saving and stop spending!  Consumer credit repair can greatly help you to establish a plan to pay off debt one chunk at a time.

  5. Check Your Credit Report for Errors – Perhaps your credit report contains duplicate or inaccurate accounts, outdated information, incorrect payment statuses or even fraudulent accounts from identity theft. You can review your credit report for free to look for such errors, or hire a credit repair service, such as Improve Credit, to do so more efficiently.  Historically, the Fair Credit Reporting Act (FCRA) allows consumers free access to all three of your credit reports (Equifax, TransUnion and Experian) every twelve months. However, due to COVID, they are currently allowing it monthly. If you notice an error in any of your reports, you’ll have to file a formal dispute with the credit reporting bureau.

  7. Hold Off on Opening New Accounts – When you are in serious house-hunting mode, it is smart to hold off on applying for new credit accounts. An inquiry on your credit score can be made each time you submit a credit card or loan application.  Having multiple inquiries made in a short amount of time can raise red flags for lenders – it might make you look desperate for money.  So, hold off on opening home improvement and furniture store credit cards for now and focus on getting approved for a home loan.

  9. Get Pre-Approved for a Mortgage Loan – Before you even start house shopping, consider getting pre-approval for a mortgage loan to know exactly how much can borrow from a lender. This makes it easier on you to know your house budget and sellers prefer to sell to homebuyers who have been preapproved.  Pre-approved mortgage loans give you a 45-day window (without the applications counting as multiple inquiries and negatively effecting your credit score) to shop around and compare loans from a number of different lenders.

Improve Credit – Your Trusted Credit Repair Service

Here at Improve Credit, we pride ourselves on being responsive, straightforward, confident and equal.  We assist our clients in a variety of ways, including business credit and repair, personal credit repair and credit monitoring.

Be sure to schedule a free analysis today or reach out to us at (704) 877-8739.

We look forward to helping you in the consumer credit counseling department and getting you into a new home in no time!