By: Becky Frost
Knowing your full credit picture empowers your decision
making, wherever you are in your homebuying process.
Most homebuyers know that their credit will play a role in
their home search and lender approval process. But what’s the best way to
become familiar with all the parts and pieces that compose the whole known as
“your credit”?
Each credit bureau (Experian®, Equifax®, and TransUnion®)
tracks your credit activity and publishes a report along with a credit score.
If you regularly check your credit report, you might think that seeing your
information from just one bureau is enough, but with such a major purchase
ahead of you, you may need broader and more comprehensive information to be as
knowledgeable about your credit as possible.
While credit bureaus follow similar guidelines to track and
score your credit behaviors, not all creditors report information to all three
bureaus. Since the information on each bureau’s report can differ, comparing
all three reports is the best way to review your complete credit history, as
well as identify any suspicious activity you may need to flag.
How can all this information play into your homebuying
process? Wherever you are along the road to opening escrow, being closely
connected to your credit is valuable.
Below, we walk you through some milestones you should hit
to get the information you need for your best shot at securing a home loan.
12 months
Just beginning your search process? Gather all your credit
information to compare accounts across the bureaus and spot issues that may
need your attention.
9 months
Preparing to prequalify? Confirm that your information is
accurate and where you want it to be before you meet with your lender of
choice.
6 months
This is when many others recommend checking your credit for
the first time. By doing this earlier, you’ve allowed yourself time to address
any issues. Confirm your credit picture is still in top form as your search
narrows down.
3 months
You’ve selected a lender and your decision-making support
team is completed. Capturing your full credit picture is vital right before you
make an offer to affirm that your credit is still exactly where you thought it
was.
Wherever you are in your search for the perfect property, be
fully armed with everything you’ll need to know about your credit. Knowing as
much as you can helps prepare you for the next step of the home-search journey,
however far along you are.
Complete credit knowledge empowers your search and keeps
financial surprises at bay — peace of mind with real value whether you’re a
first-time buyer or looking for somewhere to retire with ease.
Becky Frost is Senior Manager of Consumer Education for
Experian Consumer Services, which offers credit monitoring products
ProtectMyID®. Find Becky on Google Plus. Note: The views and opinions expressed
in this article are those of the author and do not necessarily reflect the
opinion or position of Trulia.com. This article is provided for general
guidance and information. It is not intended as, nor should it be construed to
be, legal, financial or other professional advice. Please consult with your
attorney or financial advisor to discuss any legal or financial issues involved
with credit decisions. Published by permission from ConsumerInfo.com, Inc., an
Experian company. © 2014 ConsumerInfo.com, Inc. All rights reserved.
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