Free Credit Repair Tips
Many prospective mortgage customers that are looking for an FHA loan are typically what would be considered "Credit Challenged" and require credit repair help.
Through the course of my career, I have come to appreciate the hardships that many people experience due to uncontrollable circumstances and life events.
My philosophy is "Life Happens!" and we are all subject to its whims. The true key to getting approved for a low rate FHA loan is simple...
Preparation and Presentation! These two factors go hand-in-hand and are the central foundation for your success!
Credit Repair Process
Before you begin the process of repairing your credit, you need to ensure you have a copy of your credit reports from the three major repositories. The mortgage industry term for this report is a "Tri Merged" credit report.
This report is your guide and will show you any outstanding issues that are in need of your attention.You can get your free credit reports here.
Now, the big question is, "how do you fix it the RIGHT WAY during the process of purchasing a home?"
The most important rule: NEVER tell a collection agency you are preparing to buy a home. If you do, they will leverage this fact against the amount owed and become simply inflexible on settling for an amount less than you owe under the FALSE impression that an underwriter will require you to pay the collection in full.
If you already have, and are now experiencing this inflexibility with no options, we suggest you inform the collector that satisfying the debt is NOT a requirement of an underwriter, but something you want to do to repair your credit for the future and start your home ownership with a clean credit slate. Advise them politely that this is their opportunity to be paid. Give them an amount you are prepared to settle for (make sure you are ready to pay!) and give them a date two or three weeks into the future as your mythical "closing date" to settle by. Then sit back and wait.
You have absolutely nothing to lose at this point. Use this process only as a method of last resort!