Buying a home with bad credit

Buying a home with bad credit

You probably know that your credit history affect your ability to obtain a mortgage loan and buying a house. You probably also know that you have the right to obtain a copy of your credit report and dispute incorrect information. What is a "credit doctors" indicate that they can use this process to ensure that your credit file will show up as blank when applying for a mortgage when buying a house.

Credit "doctors" are plagiarism, because (a) you probably do not need them, and (b) if your credit history is really bad loans they can not help you. They are vultures of prey on your fear of not getting credit for the purchase of houses.

One of the reasons that you do not need credit to "doctor" is that your credit history will not be perfect or bad for a mortgage. The standard joke mortgage industry, "the 30-day late with Sears." For a while, Sears reported as known, was so unreliable that the joke was, if your report does not show late payments on your Sears account there must be something wrong with you. Regardless of whether you have had problems with Sears account or other account, you do not need a perfectly clean credit history for buying a house.

In very rare cases, your credit file can get dirty bad information from someone credit file. You can find out about it, get a copy of your credit report. If you are turned down for a mortgage because of your bad credit history, ask your lender for a copy of your credit report. If this is clear case of messed-up file, talk to your lender about getting it fixed. The lender wants to make a loan, and they will be happy to assist you without charging "credit doctor" fee.

Finally, if your credit file really reflects the history of omission on your part, "credit doctor" can only worsen the situation. For example, if you shoot a series of disputes in the credit reporting agencies, they will be resolved quickly (as the law requires a quick solution to protect consumers). Because the terms of dispute resolution can vary between institutions, mortgage lenders, who have several credit reports (and almost all of them so) will see conflicting reports that a red flag, forcing them to carefully your credit more carefully.

Especially dangerous is that I've seen posted to newsgroups that you can clean your credit by obtaining a new Social Security number. Do not pay credit "doctors" to do it for you. Firstly, obtaining a Social Security number for such purposes is illegal. Secondly, it will not cost you anything to apply for a new Social Security number alone, so there's no reason to pay someone else to do it for you. Thirdly, the new Social Security number will not help you with your bad credit and buying a house. Some credit repository of algorithms will connect your new number to your old number based on your name and address (they have that opportunity, because sometimes Social Security numbers get mis-typed). And if they do not make it worse. If you say 32 years, and credit file, which returns only 6 months, you may have a more difficult time getting a mortgage than if you had a credit file with a couple of bad trade lines in it. Length of credit history is one of the most powerful indicators of credit quality, so that the presence of "new" credit file is nothing but a big red flag.