Josh wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
I am trying to improve my credit so i will be able to purchase a house before i am 30 years old. i have a good job and make between 40 and 50 k pre taxes. my credit is not so good due to previous first time experiences. i am currently 26 years of age and am in need of help to repair my credit.
What do i need to do to purchase a home without paying a ridiculous down payment or outrageous interest rates
Josh”
The Answer:
Dear Josh,
I can help you deal with getting a lower interest rate by improving your credit but the large down payment issue is a different problem.
You know it used to be that almost all loans required a 20% down payment and then lenders went crazy with no down payment deals. I expect that it will settle out somewhere in the middle there.
Putting down money on a new home reduces the lenders risk, which can lower your interest rate, and lowers your monthly payment.
Getting your credit in better shape is easy to do. You should click here and order a copy of this consolidated credit report. It is the credit report that I use as well. And when you get your consolidated credit report be sure to order it with the credit scoring option. That is important.
The consolidated credit report with the credit score option will show you all the public information about you. You need to go through it carefully and make sure that no incorrect information is being reported about you. If it is, follow the directions with the credit report and dispute that information with the appropriate credit bureau to have it remove.
Next, follow the advice given in the credit score section of the report. It will provide specific suggestions about what you need to do to bring up your credit score.
Steve