Your credit report is a record of your credit activities. It lists all of your credit card accounts and loans, the balances as well as your payment history. It also shows if any action has been taken against you because of unpaid bills such as a lawsuit or bankruptcy filing. Because businesses use this information to evaluate your applications for credit, insurance and employment, it’s important that the information in your report is complete and accurate, especially if you plan to make a big purchase like a home.

Allow me to help you understand your credit report. Contact me to set up an appointment, and I'll walk you through the intraquacies.

The Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission (FTC), is designed to promote accuracy and ensure the privacy of the information used in consumer reports. Under the FCRA, both the credit reporting agency (CRA) and the organization that provided the information to the CRA (usually the credit card company) must correct any errors or incomplete information in your report.

If you do encounter a mistake on your credit report, several steps need to be taken to correct the matter:

1. The first thing to do is get a copy of your credit report from each of the three major CRAs: Equifax, http://www.equifax.com; Experian, http://www.experian.com; and TransUnion, http://www.tuc.com.

2 In a written letter, tell the CRA what information you believe to be inaccurate. Include copies (not originals) of documents that support your position. Provide your complete name and address, identify each item in your report you dispute, and request deletion or correction. Be sure to make copies of your dispute letter and enclosures.

3. Send your letter by certified mail, return receipt requested, so you can document what the CRA received.

4. The FCRA mandates that all CRAs reinvestigate the items in question — usually within 30 days — unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the credit card company. After the credit card company receives notice of a dispute from the CRA, it must investigate, review all relevant information and report the results to the CRA.

5. If the disputed information is found to be inaccurate, the credit card company must notify all nationwide CRAs so they can correct this information in your file. Disputed information that cannot be verified must be deleted from your file.

6. When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the credit card company verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the credit card company.

7. In addition to the CRA, you should also write to the credit card company about the error. Again, include copies of documents that support your dispute. If you are correct — meaning the information you disputed is found inaccurate — the credit card company cannot use it again. Further, at your request, the CRA must send notices of corrections to anyone who received your report in the past six months.

The best thing you can do is to take ACTION!!! If you need a guide and a little motivation, contact me today!

All the best,

-Your Personal Mortgage Consultant

PS: See below for your Application Checklist.

Loan Application Checklist In general, the documentation you will need includes: Check for application fee (Currently waived by Management) Property Information (if you already have a contract on a house) Purchase Agreement. Copy of legal description and MLS sheet. If you are selling your current home, copy of listing contract. If you have sold your current home, copy of settlement statement (HUD-1). Income & Assets Pay stubs for the last 30 days.   For the past two years:   Names and addresses of each employer. W-2s Statements for each bank, mutual fund, and/or investment account for the last three months. Estimated value of personal property and furniture.   If you have made any large deposits to your accounts:   Explanation and source for deposit. If large deposit was a gift:   Signed gift letter (lender can supply). Copy of gift check. Copy of deposit receipt.   If you own more than 25% of a business:   Corporate or partnership tax returns.   If self-employed:   Tax returns for the last three years (with schedules). Year-to-Date Profit and Loss Statement prepared by an accountant.   If you own rental property:   Tax returns for the last two years and current rental agreements.   If you are retired:   Pension Award Letter.   If you receive Social Security:   Social Security Award Letter.   If you are counting child support as income:   Copy of divorce settlement. Copy of twelve months of cancelled child support checks. Debts Names, addresses, account numbers, balances and monthly payments on all current loans. Explanation of credit report anomalies, including:   Late payments, credit inquiries in the last 90 days, charge-offs, collections, judgments and/or liens. Bankruptcy filed within last seven years (bring a copy of your bankruptcy papers). VA Loans Copy of DD Form 214, Report of Separation. Miscellaneous Photo ID and proof of Social Security number. Residence addresses for the past two years. If applicable, a copy of your divorce decree. If you are not a citizen, a copy of the front and back of your green card.