advice for heading in the right direction regarding home ownership

sublime · #1 04-23-2006, 12:44 AM

hey all-

i want to buy a home eventually (ASA realistially P) but know next to nothing about that that entails. here is what my current situation is:

-debt free

100% so. i own my own car outright (worth 5k in a trade in) and have no debt. one problem is that even though i paid off all my outstanding debt, my credit report lags in showing that. i take it this should be my main priority (getting my credit report to be 100% accurate) but i dont know the best way to do that. can anyone help? most of the issues appear to be accounts that went to collection agencies that i eventually paid off. i was out of control from ages 18-22 and owed a lot of money that i paid off the last few years. some made it to agencies, which apparently sucks big time on my report.

- how much will i need to put down?

again, no idea.

- do i qualify for first time homeowner programs?

etc etc etc

Sniper · #2 04-23-2006, 01:14 AM

If there are accounts you have paid off that still show on your credit report as unpaid, you should use the credit bureaus dispute procedures to dispute the info. You should do this for all 3 bureaus (experian, transunion, equifax). I believe they all have an online process for this (and you will get resolution info within 30 days).

sublime · #3 04-23-2006, 02:03 AM

so getting a copy of my credit report is the first step i presume. should i pay for this or can i get one for free?

Sniper · #4 04-23-2006, 02:10 AM

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so getting a copy of my credit report is the first step i presume. should i pay for this or can i get one for free?

[/ QUOTE ]

Once a year you can request a free credit report from each bureau thru https://www.annualcreditreport.com/ or directly from each. I think you will need a report# for each, so you might want to scan the individual sites for their dispute procedures before getting the actual reports.

sublime · #5 04-23-2006, 02:25 AM

[ QUOTE ]
[ QUOTE ]
so getting a copy of my credit report is the first step i presume. should i pay for this or can i get one for free?

[/ QUOTE ]

Once a year you can request a free credit report from each bureau thru https://www.annualcreditreport.com/ or directly from each. I think you will need a report# for each, so you might want to scan the individual sites for their dispute procedures before getting the actual reports.

[/ QUOTE ]

are there any sites that can do this (clean my credit record up) for me for a fee?

Sniper · #6 04-23-2006, 02:45 AM

As a general rule, its better to do it yourself... your first cut at the disputes should be relatively painless and not take much time. Especially since you are currently debt free.

Misfire · #7 04-26-2006, 05:07 PM

If the negative info on your credit report is inaccurate, dispute it. Do it yourself as it's not that hard and paying someone is just a waste of money.

If the negative info on your credit report is accurate, that sucks. If everything's paid now, those marks will fade over time.

You don't need a credit card to get a loan. (Hell's Bells, you just got OUT of debt. Why jump back in???) Find a mortgage company that does manual underwriting and show them how you've paid your rent and utilities on time for the past two years and you'll be fine.

Put at least 20% down to avoid paying for private mortgage insurance. If you can't save 20%, you probably can't afford a house.

Sniper · #8 04-26-2006, 05:12 PM

Misfire, the reason to open a secured CC account, is to start rebuilding his credit.

Misfire · #9 04-26-2006, 08:32 PM

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Misfire, the reason to open a secured CC account, is to start rebuilding his credit.

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Thanks, I hear the Pope is Catholic too.

For the purpose of buying a home (the point at issue), a mortgage company that does manual underwriting can approve a mortgage without requiring OP to rebuild his credit--thus, a credit card is unnecessary. If one prefers to stay debt-free, he can, and he'll still be eligible for a mortgage.

sprmario · #10 04-26-2006, 06:06 PM

I disagree... dispute it all. Just do so in an orderly manner and don't claim that the items are false. I would just write saying that I believed this item was not quite right and to please have it verified.

Correct or not correct, after 30 days they have to remove it.

I would do this yourself. Yes, it's a bit of a pain, but I think that 90% of the services out there are scams and they do potentially illegal things in your name. Just suck it up and do it yourself.

[ QUOTE ]
If the negative info on your credit report is inaccurate, dispute it. Do it yourself as it's not that hard and paying someone is just a waste of money.

If the negative info on your credit report is accurate, that sucks. If everything's paid now, those marks will fade over time.

[/ QUOTE ]