When you are ready to buy a home or “rent to own” a home, you must know what your credit score is.  If it is on the low side, then you must try to repair your credit in order to just qualify for a loan or so you don’t get a high interest rate.  When buying a home using the “rent to own” method, I can’t stress enough how important it is to know what your credit score is and how you can take steps to improve it.  Too many times a buyer finds a home they would like to “rent to own” and they come to find out that their credit score is sub-par, which disqualifies them from getting a mortgage today.  That is why they opt to do a “rent to own” purchase.  But here is the catch; if you can’t qualify today, they how is a homeowner to believe that you will qualify for a loan in a year from now when the lease period is up.  Sometimes it is not an issue and you will get the house.  But when it is, you will need to provide some kind of proof that you are actively trying to repair your credit. Ways you can do this is by;  1. providing dispute letters that you have sent to the credit reporting agencies,  2. provide some kind of proof that you are using the services of a professional credit repair agency,  3.  show previous credit reports and how they have improved from one to the next,  4. any documents that you have received from any creditor that shows that you have satisfied a claim, judgement, collection, etc…

If you would like to start your path to home ownership and you need to repair you credit, conduct an internet search for ways to repair your credit.  There is a ton of info out there, so do your research.  If you need a point in the right direction, contact me and I will be happy to help you out.  In the next post, I will discuss how the credit agencies break down and weigh your score.