Check And Fix Your Credit Before You Apply For A Mortgage
Every day people apply for mortgages and are suprised when they are turned down at the mortgage application process due to credit problems. I have not seen any statistics on how many of these applications fail due to eroneous information on their report, but I hope to provide to you some tips on how to prevent this from even being an issue
Credit reports are infamous for having improper information on them. This could be from mistakes by companies reporting to them, or by the agencies improperly adding information on your report from someone else. This also includes the buzzword of the day, identity theft. The best move is to check your credit reports as early as six months prior to entering in to any real estate transaction.
Six months may be considered a long time, but if you are going to fix any problems on your credit report, it will take this amount of time at a minimum.
With the new Credit Law in effect, you get a yearly copy of your credit report anyway. After getting these credit reports, check them thoroughly. If there is any improper information or good reasons behind any negative aspects to the reports themself, immediately file for correction with the reporting agency directly. They all have websites (listed at the bottom of this article), with sections for disputes.
All of these agencies offer extra monitoring services for your credit, etc. This is not necessary. Filing disputes does not cost any money. Do not get tricked in to purchasing anything that you do not need.
Federal Free Yearly Credit Report