| A: The first step to repairing and assessing your credit is to request a copy of your credit report. A three-in-one report showing your credit history from all the major credit bureaus is available from any of the bureas directly. Even if you have been turned down for credit before, you need to be certain that all the problem items on your credit report are accurate. Go through your credit report line by line and write to the credit bureau (certified, return receipt requested) about any items that are not accurate. Pay off any debts that you can pay off, and be sure that you are paying your bills on time.
If your credit is poor, you can expect to pay a higher interest rate for a high-risk mortgage, but there are products available to help you. You will need to make sure that you have enough downpayment to handle additional "points" during your loan application and that the loan amount you are asking for is well below the value of the house. Given those circumstances, you may still be able to buy the house of your dreams.
If you know or suspect that your credit is less than perfect, be sure to work with a Buyer's Agent so that you have someone working on your behalf during your home search. Disclose your credit problems to the agent so that you can all sit down and devise a strategy that will work for you.
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