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Cleaning Up Credit Before Buying a Home (Consumer Law & Fraud)

Sat, 11 Apr 2009 12:02:00 GMT

Before a person buy a home do they need to pay off everything on there credit report first.

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  • Sat, 11 Apr 2009 13:51:00 GMT(1)
  • Depends on what's on there.

    Outstanding judgments? Definitely. No lender will consider you if you've been sued for past debt and have had a judgment rendered against you.

    Old credit card debt? Usually.

    Outstanding medical bills? Sometimes. If you're on a payment plan and are meeting your monthly obligation, it's typically not an issue. If you have unpaid collections, the size of them will matter.

    If you're looking to buy a house, it's best to start cleaning up your credit about a year beforehand, and don't apply for ANY credit during this time. Not even a car loan.
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