Credit information helpswhen applying for financing
Before you apply for a mortgage loan, consider finding out what your credit report says. The information in your report affects whether you qualify for a mortgage and what rate you can get.
If you find errors, you can clear them up before they hamper your ability to get financing. Or, if you find legitimate blemishes, you may be able to take steps to improve your credit picture.
You can request one free credit report every 12 months from each of the three major consumer credit- reporting agencies: Equifax, Experian and TransUnion. But you don’t have to get all three reports at once. How many you request and when is up to you. If you know you’ll be applying for a loan in the near future, you might choose to receive the three at the same time. That way you can spot an error or legitimate problem that appears only on one or two of your reports. And you can directly compare the reports at the same point in time.
But if you prefer, you can space out the reports. You can get one every month for three months or one every four months. That strategy might help you track how your credit history is changing over time. Getting the reports periodically is a good way to monitor whether you have fallen victim to identity theft. The report
The report lists how much you borrow, whether you pay on time, if you’ve been sued or have declared bankruptcy. The disclosure includes information a third party would not receive, such as medical account info. Don’t confuse this report with a credit score. A credit score, which lenders use to quickly gauge creditworthiness, is computed by the credit reporting bureaus based on variables plugged into a complex equation. If you want your credit score, you typically have to purchase that information. Get a report
You can request the free reports online at AnnualCreditReport. com. You will have to provide personal information such as your date of birth, Social Security number, and current and previous addresses, so the credit agencies can accurately match you with your information. After all, it does you no good if you get the report for someone with your same name. The site is encrypted to ensure a private and secure connection.
Once the information is verified, your report will appear on screen. However, you won’t be able to fix errors on the website. Instead, you should work directly with the credit reporting agencies to correct any mistakes.
Their sites are Equifax. com, Experian. com and TransUnion. com.
You should provide the information you feel is incorrect in writing. If you don’t want to access your reports online, call 877322- 8228 or write to Annual Credit Report Request Service, P. O. Box 105283, Atlanta, GA 30348- 5283.
Make sure your credit’s in good shape before you pursue a mortgage loan, and you’ll have one less thing to worry about when you find your dream home. For more information about buying property, visit TexasRealEstate. com and HAR. com.
Wayne Stroman of Stroman Realty Inc. is the 2012 chair of the Houston Association of Realtors.