Contrary to popular belief now is a great time to buy a home in America. Interest rates are still low and prices are falling fast. The only thing holding many people back is tighter mortgage lending guidelines.
So if you have been denied a mortgage and said to yourself I need to fix my credit to buy a home keep reading because there are some useful tips below that can help you fix your credit and buy the home you want.
Why Were You Declined?
First you have to establish why you were turned down for your loan. Was it lack of credit or just bad or low credit scores? Your mortgage broker should be able to tell you why the lender declined you.
Denied For Bad Credit
If you were denied your loan do to bad credit and negatives on your credit report you are going to have to perform some credit repair.This is a straight forward process and involves going to the credit bureaus websites and disputing the negative information that on your credit report.
Your mortgage broker should be able to provide you with a copy of your credit report that you can use for this process. He or she should should also be able to help you with credit repair if you are having trouble with it. Any good mortgage broker should be more then happy to help you with this as long as you stay with them for financing.
Denied For No Credit
If you were denied for having no credit there are a few things you can do quickly to get some accounts reporting on your credit report.
The first is to apply for a secured credit card. With these types of cards you give the credit card company cash to cover the account in the even you default. Generally this amount is between $250 and $500. because it is secured by money approval is almost guaranteed as long as you are employed. Just use it wisely and do not max it out or be late with any payments.
You can also try and open a small account at a rent to own center. These types of business's will basically let you buy a product on credit and it is a great way to add a trade line to your credit report. Just do not borrow so much that it increase your debt to income ratio to much. If in doubt double check with your mortgage broker about how much you can safely pay every month.
The only drawback being denied a loan because of credit is it may take a few months to see the effects of adding trade lines or cleaning up your credit report and the house you want to buy may not be for sale at that time, but it does set you up for a better future and will make buying a home easier in the long run.
For more Steps To Improve Credit and a huge amount of FREE credit repair information visit http://www.fixcreditreportscore.com today
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