Changes are constant in the lending industry. No matter how you slice it, it all comes down to CREDIT.

Over the last decade and half there were many investors willing to take a chance on some one with less than perfect credit. Now they are GONE! So what do we have left? We have conventional lending that will soon require 720 credit score for 95% financing. We have FHA that is more accepting of lower credit scores but even they have tightened up; in most cases you must have at least a 580 credit. VA is about the same, USDA is also in that area although 580-619 require an exception by the underwriter to allow the loan to close with them. I firmly believe that anyone disiring to buy their own home can. They may need a plan on how to get there but if the desire is strong enough and they follow the plan, it will work.

I’m not a credit expert by any means but I have viewed many many credit reports and know what has stopped my clients from being able to buy a home. I also know what has helped several my clients improve their credit and raise their ever important credit score so they could buy that home they were wishing for. If your up to the challenge, willing to put in some time and effort, you too can get your credit report improved and that credit score up to where it needs to be.

CREDIT, CREDIT, CREDIT

Everyone needs to pay close attention to credit. A free credit report can be obained annually from each credit bureaus online at www.anualcreditreport,com or if you have been denied financing or insurance or employment due to credit within the last 60 days you are also elligible. The company you applied to must supply the credit bureau’s name, address and telephone number.

The three major credit reporting companies are: Experian, Equifax, and Trans Union. You want to get your report from each of them as different companies use different bureaus to report activity so what might appear on one may not be on the others. Below I have listed the addresses for each reporting company so that you may request your free copy.

Experian Attn: NCAC PO Box 9530 Allen, Tx 75013 Phone: 877-322-8222 Online www.experian.com

Trans Union Consonsumer Solutions PO Box 2000 Chester, PA 19022 Phone: 800-916-8800 Online www.transunion.com

Equifax Customer Service PO Box 740241 Atlanta GA 30374 Ph 800-685-1111 www.equifax.com/FCRA or WWW.investigate.equifax.com

Once you receive your report learn how to read them. Attached to your report will be an explanation on how to interpet your report. Practically everyone has at least one error on their report. Reporting companies only report the infromation supplied to them by the Creditor; they do not verify the information. Get ready to disect the information. Carefully review everything from typing errors, outdated and incomplete information to inaccurate account histories. You’ll want to make a thorough list of items you plan to dispute and why; supply as much proof as you can.

If the late payments and collections in your report are true, only time and improved habits can change that. Late payments, such as credit cards, and charged-off accounts remain on your report for seven years; bankruptcies for 10. Don’t be fooled by companies promising to erase all the bad stuff. Only inaccurate information will be removed. I have had many clients pay good money to companies “GUARANTEE” to remove “ALL NEGATIVE INFORMATION” only to have thrown their money out the window. You can remove just as much as any of these companies on your own. It takes a some effort from you but in the long run it will be worth it.

It pays to be thorough! You can either complete the dispute form provided with your credit report or write a letter or go online to make your dispute; it will be much faster. You must identify each mistake and state why it’s wrong. Its a good idea to send a photocopy of your credit report with the mistakes circled to the reporting credit bureau. In addition you need to supply proof to prove your point. Cancelled checks, copies of settlement offers and proof that you paid it. If an account is showing late payments that you believe are incorrect send them proof that it wasn’t late. Hopefully you have kept copies and good records. Keep copies of everything that you send the credit bureaus, plus dates sent. The credit bureau must investigate any dispute within 30 days of receiving your letter. Any item that is not verified as accurate by a creditor is removed. If the credit bureau makes any changes to your credit file, it will send you a free, updated copy of your credit report. Once a negative item is removed from your report, the credit bureau cannot put it back on unless a creditor verifies its accuracy and completeness — and sends you written notice.

Part Two will help you work on items that remain on credit that could be an issue when attempting to get new credit.