Homebuying and Identity Theft

U-Prosper Education Center

Homebuying and Identity Theft

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Homebuying and Identity Theft

The Risk

You pay all your bills on time, keep your credit card balances low, and have a high paying job. Yet when you try to get pre-approved to buy your very first home you get rejected.

It happens more often than you think.

One of the reasons it happens so often is because many people believe it won’t happen to them. Yet identity theft is becoming more and more common. In 2017, 30 percent of US consumers were victims of identity theft, a year-over-year increase of 30%.

There have been several large scale data breaches in the past couple of years. Equifax, Yahoo, Facebook, and more have all had major breaches were millions have had their personal information compromised. Besides freezing your credit completely, monitoring your credit and acting fact when identity theft does strike is one of the best ways to protect yourself.

How to Fight It

Get Pre-Approved!

One of the reasons we always recommend prospective home buyers to get pre-approved as quickly as possible, is to get an accurate picture of your credit. If you have a good credit score, great! You will be pre-approved and you know you are on the right track.

If you get rejected because of identity theft, then it’s time to start disputing the incorrect information on your credit report and work towards getting your credit score back to where it should be. The earlier you know, the easier it is to remedy the situation.

If your credit score is low and there was no identity theft, our mortgage officers can coach you to raise your credit score. Perhaps it’s as simple as refinancing your debt. You won’t know unless you know where your credit is.

The earlier you know where your credit stands the easier it will be to change course and raise your score to where it needs to be to get pre-approved.

Information contained in this article is for educational purposes only. Please consult with a certifed financial advisor before making any financial decisions.