Helping Wisconsin First Time Home Buyers Organize their Credit

Understanding credit requirements for buying a home can save a lot of frustration and disappointment for first time home buyers. The following list represents some of the most common pitfalls for buyers and offers advice to overcome it.

1. Get your own copy – Before talking to a mortgage broker you should look at your credit report. Contact the top three credit agencies, Transunion, Experian and Equifax and ask for your report. You can also pull your own free credit report that was made available through the FACT act.
   
2. Fix mistakes first – Based on the sheer volume of data processed by the three credit agencies there is a lot of room for error. Make sure each item is correct. Look over your address history, work history and correct spelling of your name. Also look over the various accounts and make sure they are all yours.
   
3. Look at problem areas – There are a handful of things people need to do in order to have a high credit score. Pay bills on time, don’t have too much debt, and have a good mixture of types of debt. If you are struggling in one area then fix that problem in order to see your scores increase.
   
4. Pay down loans as much as possible – When you get ready to apply for a mortgage loan the lender will look at your current debt to see if you can handle the addition of a home payment. The lower your debt, the more house you will qualify for.
   
5. Give yourself some time – You will not correct your credit score in a day or a week. It takes a few months of consistent payment history, along with paying down balances, to have a significant impact on your scores. Stay at the job and don’t get discouraged.