part of the loan application process, virtually all
lenders will want to see a copy of your credit report.
The report will list all your long-term debts (credit
cards, mortgage payments, automobile and student loans,
etc), as well as your payment history. If you don't
have a copy of your credit report, most lenders will
generally require you to pay for a copy when they
process your loan application.
real estate experts agree that it is a good idea to
obtain a copy of your credit report several months
before you apply for a loan. This is so you have a
chance to resolve any problems with your credit before
your bank sees it. U.S. Federal law ensures that you
have access to your credit report, which may be obtained
from your local credit bureau or any of several national
firms that specialize in credit reports.
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
on your 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.
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.