When Buying a New Prescott Home, Check Your Credit First

Unless you’re paying the full price in cash, you’ll need a mortgage when buying a Prescott new home. Lenders examine your work situation and income to determine whether they should give you a loan. But they also look at how you handle your finances by examining your credit report. You should get this document to find out what they see.

According to the law, you’re entitled to a free credit report from each of the major credit bureaus: Equifax, Experian, or TransAmerica. You can only get it without cost from AnnualCreditReport.com. Many websites that claim to grant your access to this document also sign you up for unneeded credit protection services, so beware.

Once you receive your report, check out the listing for accuracy. Pay particular attention to merchant names and contact information, amounts owed, payment terms and histories, and transactions. If you discover charges you never made, someone may be fraudulently using your credit. Whether the problem is a misspelling or an unsubstantiated charge, contact the related merchant and reporting credit bureau right away. They are legally obligated to investigate and correct any issues.

There are some problems you can do nothing about. These are the accurate listings of your late payments, foreclosures, or bankruptcies. They will eventually fall off the report after about seven years. In the meantime, mortgage lenders may use these issues to deny you a loan, or offer you unfavorable terms or interest rates. If they ask you about the listings, be prepared with credible explanations of why they exist.

If you want more help in buying a new home in Prescott, Arizona, please contact us.