So you want to buy a house. What do you do now? You need to find the house that fits! One that fits physically and fiscally. Let's cover the fiscally now.

Your credit score (FICO score) is calculated by each credit repository using a software designed by Fair-Isaac Company. This software analyzes many components which comprise your borrower's credit profile. They include but are not limited to available credit, number of open accounts, length of credit history, amount of debt, number of derogatory items, and number of inquiries. Each component is assigned a quantitative risk value and the sum of all the values is formulated into a single score. It is not uncommon for each repository to calculate a different score. In general scores exceeding 680 are considered very low risk; scores from 640 to 679 are considered acceptable risk; scores 600 to 639 are considered moderate to medium risk and scores below 600 are considered risky.

If you believe your credit report contains inaccurate information you may want to dispute it with the appropriate repository. The three main credit reporting agencies are:

Experian 888.397.3742
Transunion 800.888.4213
Equifax 800.685.1111

It is important to keep good records. In most cases the credit provider of the disputed item will make you provide the burden of proof. Credit repositories report facts they are given, and in most cases are not allowed to change them without authorization from the credit provider.

If you are uncertain about your credit score, it might be a good idea to order a report and review it before applying for a loan. Now is the time to settle all disputes, or have explanations ready for the questionable items!

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