It can take years for New Orleans first-time buyers to save up for their first home’s
down payment, but even after that hurdle has been cleared, it can take even
more time to secure a mortgage -- if they have neglected the other part of the
equation… Their credit rating.
Before first-time buyers in New Orleans will be able to move forward with that
initial home purchase, they need to ensure that their credit score does not
raise the kind of questions that sometimes derails an otherwise well-qualified
home loan applicant. This has always been true, but may become even more likely
as lending limitations grow increasingly strict.
But it’s the occasional recording error or misstatement
that is most easily preventable. Ironically, those often affect perfectly well-qualified
buyers—precisely because they have no reason to suspect that a problem could
crop up.
The upshot: New
Orleans first time buyers should start reviewing their credit history one year
to six months before they intend to buy a home. Since the credit agencies provide upon
request free copies of every individual’s report once each year, the only
hassle is having to check the details line-by-line (a single reporting error
can have a big impact on an overall score). And since it’s not unusual to take 90 days or more to cure a
disputed entry, the earlier a first-time buyer begins the process, the better. Individuals
can file a dispute online with the credit bureaus, or can hire a credit repair
company to assist with disputes. In all cases, claims should be documented and
correct information provided immediately.
Once a New
Orleans first-time buyer is certain that his or her reports are accurate,
is it time to relax? Hardly. It’s important to continue to monitor those scores
to ensure against accidental surprises. Especially recently, after wholesale credit
card thefts sowed confusion and disruption throughout the system, it’s probably
wise to assume nothing. Several online services offer credit monitoring (and
it’s possible that your bank might provide free monitoring).
From first-time buyers to seasoned investors, I’m here to
help my clients every step of the way. Call me today! (504)297-2619
(504)297-2619
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers licensed in the state of Louisiana.
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