credit-report-basicsMost homebuyers are aware of the key aspects of their credit, which play a vital role in the lender and home search approval process. But what is the best way to educate yourself on all the parts and pieces called credit score?

Three Agencies Everyone Should Know About

The three most important credit reporting agencies are TransUnion, Equifax and Experian that keep track of your credit activity and publish a report, which features your credit score. It is a good habit to get a copy of your credit report, and if you already do, you probably think that the information from any one of the credit bureaus is enough.

However, buying a home is not a small purchase so you would need as much information as possible about your credit. Although credit bureaus follow relatively similar processes to track and score your credit, not all lenders report to all three credit bureaus.

The Importance Of Your Credit History

Given the fact that the reports from all three agencies might not reflect the same information, it is best to compare all three reports to get a clear insight into your credit history, and at the same time identify any suspicious activity.

So, what role does all this information play in the home buying process? Below we highlight a few milestones that you must meet to get the information you need for your best shot at home loan approval.

Twelve Months

This is the beginning of your search process, making it the perfect time to gather all the information from all three credit bureaus and fix any irregularities if needed.

Nine Months

This is the period where you will prepare yourself to qualify, and confirm that all the information in your credit records is accurate and in place before you meet with your lender.

Six Months

This is actually the period recommended by others to check your credit score and reports. But you’ve already done this earlier, which has given you enough time to fix any spot issues. At this time, you can simply ensure your credit information is in top shape.

Three Months

At this time, you will have made your decision about your lender of choice and your decision-making support team is finalized. It is extremely important to get your credit history and fix any issues before you make an offer on a specific home.

Regardless of where you stand with regards to searching for the perfect property, it is extremely important to be fully prepared with everything you need to know about your credit. When you know as much as you can, you are more prepared for the steps ahead in the home search journey, regardless of how far along you may be. When you have complete knowledge of your credit, you gain an added edge that helps you avoid any financial surprises. Adding to this, you get peace of mind whether you’re a first time or seasoned homebuyer.

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