Understanding Your Credit Report: The First Step to Homeownership

Understanding Your Credit Report: The First Step to Homeownership

Your credit report is your financial report card, and lenders scrutinize it closely when you apply for a mortgage. Let's break down exactly what's in it and why each section matters for your homebuying journey.

What's Really in Your Credit Report

1. Personal Information

  • What's listed: Your name, addresses, Social Security number

  • Why it matters: Errors here can trigger fraud alerts

  • Action step: Dispute any inaccuracies immediately

2. Account History

  • The good: Open/closed accounts with payment history

  • The bad: Late payments over 30 days old

  • The ugly: Charge-offs or collections

3. Credit Inquiries

  • Soft pulls: Doesn't affect score (like your own check)

  • Hard pulls: Dings your score 2-5 points each

4. Public Records

  • Bankruptcies (7-10 years)

  • Tax liens

  • Foreclosures

How to Get Your FREE Credit Reports

  1. Visit AnnualCreditReport.com (the ONLY free government-authorized site)

  2. Call 1-877-322-8228 if you prefer phone requests

  3. Request all three bureau reports at once

Pro Tip: Space out requests (one every 4 months) to monitor year-round

Watch Me Walk Through a Sample Credit Report

See exactly where to look for red flags:

#Realtor #RealEstateAgent #FirstTimeHomeBuyer #InvestmentProperty

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