Ensure Your Credit is in Check Before Getting a Home Mortgage Loan

When it's time to buy a home, credit plays an important role in obtaining a mortgage loan. And for this reason homebuyers should take careful note of their credit scores, staying on top of the information to make sure everything is current and accurate. Maintaining a firm understanding to one's credit score, noting what can be done to improve it and taking active steps to correct it can behoove buyers looking for home loans.

Why should anyone looking to buy a home pay close attention to his credit history? Credit score numbers can equate to paying hundreds of thousands of dollars of interest over the life of a given home mortgage loan. While loan officers at our preferred lender are great at finding the best loan programs, buyers would do well to take a proactive approach to their financial well-being. Monitoring credit reports and reporting any mistakes and/or fraudulent activities can be very beneficial.

The three major U.S. credit reporting agencies are Experian, Equifax and TransUnion. These agencies tend to neglect evidence consumers present when they dispute errors, according to Caroline Fairchild in her article entitled, Why Your Credit Score May Be Wrong: Agencies Overlook Evidence in Dispute Claims, Report Finds. The Federal Trade Commission adds that those with mistakes in their credit reports should order copies of the current report, file the dispute with the reporting agency and if further assistance is needed, work with the Consumer Financial Protection Bureau (CFPB). Take the necessary steps to keep your credit up to par so when you're ready to buy a home, getting a home mortgage loan will be an easy process.