As the old saying goes, an ounce of prevention is worth a pound of cure.
This has never been more true than with regard to your credit report, especially when you get ready to finance a home. Understanding your credit report before you attempt to finance a home may pay you huge dividends in reduced time and stress.
A credit report is basically a report card that lenders use to determine how you manage your credit.
By knowing what’s on that report, and also being aware of what your lender will see when you attempt to finance a home, you’ll be prepared and your expectations will be set.
It’s important to bear in mind the fact that you may have to take some action based on information found in your credit report.
As upsetting as it may be to realize you’ll need to pay down or pay off debt, which could take several months depending on the amount, it’s even more upsetting to not know until it’s too late.
Plus, if there are incorrect items on the report, you’ll have time to correct or dispute them.
And time is of the essence; even a very simple transaction, such as making a single payment, may take 30 days to show up on a credit report.
More involved issues, such as disputing a transaction or removing incorrect information on a credit report, may take much longer. The more ahead of the curve you are in this process, the better off you’ll be.