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Prepare For a Mortgage with Credit Repair

By Ian Webber

Republish: EasyPublish™
Published: 03May2010
Word count: 546
Viewed: 249 time(s)

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Your Mortgage Rate Matters

If you are planning to purchase a home you might want to consider hiring a reputable credit repair service to tune-up your credit score before you make your mortgage application. After all, you may live with your mortgage interest rate for many years to come. Credit repair will insure that the interest rate is as low as possible.

The Credit Repair Payoff

Most mortgage interest rates these days are based on credit score on a sliding scale; the higher your score, the lower your rate will be, and vice versa. Even small changes in your score can make enough of a difference in your rate to have a significant impact over time. The potential pay back from a small investment in credit repair may be huge.

Numbers Add Up

For example, if you have a mortgage of $200,000 with an interest rate of 6 percent, your payment would be $1,199. If you could reduce your interest rate to 5% by investing in a few months of credit repair, your payment would fall to $1,073. The difference of $126 is significant on a monthly basis, and over time it can add up to tens of thousands of dollars.

Getting Started

You might be surprised to see how much of a difference credit repair can make, even if you feel that your credit is decent to begin with. Your credit repair program will start with a comprehensive review of your credit reports. Everything that could possibly have an impact on your scores will be identified, and an appropriate method of cure will be selected.

The Opportunity List

Some of the issues that may be selected for inclusion in your credit repair program are items that are past the reporting period limit, redundant collection accounts that should not be on your report as a matter of law, all questionable derogatory information, and any opportunities for score optimization that can be achieved by an effort on your part.

Taking Action

The items that can be addressed through credit bureau disputes will be handled by your credit repair company by a systematic campaign of writing letters to the credit bureaus. Other items may be addressed directly with creditors or collectors as appropriate. Score optimization techniques that you can carry out on your own may include revolving balance reduction, opening or closing accounts, and resolving legitimate collections; your credit repair company will advise you on these actions.

An Unexpected Goldmine

Once your credit repair program is underway you may discover that your credit report was a goldmine of score improvement opportunity. This is often the case even for people who thought that there were no reporting errors needing attention. Current credit scoring models react to even the most subtle changes in your profile. Even small changes may add up to surprising improvements in your score.

Start Today

Credit repair is an imminently practical process for anyone who wants to make sure that their credit scores are as healthy as they can be. And in the current credit environment, where every single point can translate into real money in your pocket, it is a financial necessity. Take the first step today and contact a credit repair professional. Before you know it your credit will be looking great!

Copyright © 2010 Ian Webber. All Content. All Rights Reserved.

Ian Webber is an expert in consumer law and credit repair. Ian is a graduate of the London School of Economics and The University of Chicago where he earned his LLM. Ian consults with one of the leading online credit repair services and is currently based in Florida.

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