Credit scores play a big factor in the purchase of a home, so you should periodically check your credit reports if your plans are to buy a home in the near future. A higher credit score qualifies you for lower interest rates, which can save you thousands of dollars over the course of your loan.
Even if you’ve always had a history of stellar credit scores, a small mistake made near the time you are applying for a loan can make a big impact on the interest rate that a lender is willing to offer you. Even worse, if there has been fraudulent activity it may take months to correct.
There are a number of credit monitoring companies that, for a small monthly fee, will monitor daily activity and report directly to your email any possible alerts that should be brought to your attention. When selecting a credit monitoring company, you will want to make sure the service monitors all three major agencies, Experian®, Equifax® and TransUnion®, that financial institutions use to rate you. Some companies will even provide a monthly credit score in addition to the report.
Usually by the time you are ready go home shopping and make an offer to purchase, there is not enough time to resolve a problem. Or in trying to resolve the problem it makes the lender view you with more scrutiny. If you are in this predicament, you may want to ask your lender what you should and shouldn’t tackle before you stir the pot too much. Lenders can be great resources when it comes to tips on fixing your credit.
For an additional fee, some credit monitoring companies will process disputes and offer toll-free support 7 days a week. Resolving a derogatory report, such as a delinquency from a creditor, can take weeks to clear up and, if not done in a timely manor, can often hurt a credit score for years to come.
Identity theft is a serious problem in this era of digitized information and with some foresight you can be a protected consumer never having to go down the road of credit repair. Even if you are not in the market for a home, you will want to know when someone other than yourself opens an account in your name.
If your plans include a home purchase, it’s never too early to track your credit and review your credit score. One such free service is paid for by its advertisers. When evaluating what service is best for you, read the fine print or use a comparison table to determine what you are truly getting.
Looking for DC Ranch homes for sale? Contact me at 480-360-0281 to make an appointment to view properties. Make DCRanchHomes your “go to” source for DC Ranch real estate and community information.
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255