Some mortgage eligibility can be affected by inaccurate information, so double-check all names, balances, and contact information, especially addresses. If there are errors or fraud discovered during the review of your credit report, that’s not the end. You may dispute inaccurate or incomplete information.
If you can, avoid applying for too many new accounts or adding significantly to your debt while you’re in the process of buying a house. Too many new account requests or too much new debt can severely harm your credit report.
The Consumer Financial Protection Bureau says that it is crucial to check your credit report as soon as possible before you begin shopping for a home. Your credit history will decide whether or not you receive an ideal interest rate on a mortgage loan. These scores are often the main determiners for your qualification status and the rate that you’re offered. If you’ve decided to go looking for houses within three months to six months, it would be a good idea to request to review all available reports. This way, all errors or issues can be identified and taken care of at once. Don’t fear; checking your credit report doesn’t harm your credit score in any way.
If you can, avoid applying for too many new accounts or adding significantly to your debt while you’re in the process of buying a house. Too many new account requests or too much new debt can severely harm your credit report. Remember: requesting your own credit report won’t hurt your score. Also, while you shop for a mortgage with additional lenders, their credit checks won’t damage your credit as long as they happen within 45 days.
Borrowers who have credit scores in the mid-600s range and below will pay the highest interest rates for mortgages and may not qualify for a loan, depending on loan type and lender. If your score is in this range, your best course of action is meeting with a housing counselor and deciding on innovative actions to move forward.