- Posted May 1, 2014 by
Getting Ready for Your First Home Loan
Looking to buy your first home? Most lenders prefer applicants with a solid credit and job history. Here are a few things to take care of well before you apply for a mortgage.
Obtain a copy of your credit report from all three reporting agencies; Equifax, Experian and Transunion. Make sure that the personal information section is accurate. Is your name spelled correctly? What about previous addresses and employment information? Contact the credit reporting agencies if there are any errors.
Go over your credit history and make sure that all information is displaying correctly. If there are any inaccuracies you may want to contact the creditor reporting the information in addition to filing a dispute with all three agencies. It's generally advised to take care of credit inaccuracies and disputes well before you decide to apply for a loan as the process can take some time. An investigation may take up to 30 days to resolve.
Most lenders want to see a solid and established credit history with few or no late payments. If you don't have sufficient credit you can build a history by obtaining a secured credit card; your local bank will most likely offer these. Department store credit cards with lower limits are generally also relatively easy to obtain. If you have existing accounts that are not being reported you may want to contact the creditor and ask them to report the account to all three credit bureaus.
Try to establish a solid employment history; most lenders like to to see two years at the same employer. This shows stability and a steady stream of income. If you are self-employed you may have to provide tax returns and bank statements as proof of income.