One of the major hurdles for many “hope-to-be” first-time homebuyers is tackling debt. If you have collections on your credit report this is the first place to start. This process can easily feel akin to emptying a swimming pool with a teaspoon. However, with a good plan and perseverance, it can be done! Here are a few tried and true suggestions for getting started.
First, get a good picture of your financial situation. The most useful tool is your free annual credit report. Three companies provide them so you can pull a new report every four months from a different company. The website to get started at is www.annualcreditreport.com. This report will help you keep tabs on your debt and track your progress.
Next, review the debt on your report. If you have any collections or public records you will need to make sure the debt is yours and if it is not, file a dispute. For the debt that is yours, make arrangements with the companies or individuals. The credit report will have the contact information. You can start with the smallest debts and work your way up. With every debt paid, you will feel a sense of accomplishment that will keep you going when it is difficult.
We work with first-time home buyers all the time! Please feel free to call us at 661-589-2222 if you have any questions or post questions below!
We will provide more information in the coming weeks about the Hurdles to Homeownership.
If you have been through the process and have suggestions, please comment below!