Check Your Credit Reports Before Applying For A Home Mortgage Loan.

How well you've handled credit in the past not only will determine whether a lender will approve your mortgage loan, but will have a bearing on whether an approved loan will carry a high or low interest. The better your credit history, the better the interest rate.

Whether you are considering buying a home in the Phoenix or Scottsdale area or anywhere in the country, now is the time to check your credit reports. The good news is that information is readily available to you. Your credit history is maintained by three popular credit reporting agencies: TransUnion, Experian and Equifax. You can visit each agency's website and order your credit report online and see it almost instantly. Or you can order your report via phone.

• TransUnion:http://www.transunion.com/


• Experian:http://www.experian.com/


• Equifax:http://www.equifax.com/

Credit reports include a comprehensive history of late payments, how much credit has been extended to you and any problems with your credit. One good thing is that negative comments in your credit file can only exist in your file for seven years with the exception of a bankruptcy filing which remains in the file for ten years.

Lenders tend to pay greater attention on more recent credit history. Credit reporting agencies maintain a credit score. Obviously, the better the score, the more likely your mortgage home loan will be approved and the lower interest rate you are likely to pay. In many cases, depending upon the lender, a poor credit report can still result in a home loan approval, but since the risk factors of a loan default are much greater with a borrower with less than perfect credit, a higher rate of interest will usually apply which will increase the monthly mortgage payment.

Order credit reports from all three credit reporting agencies and compare them carefully. If you notice any errors, get those resolved quickly so any mistakes can be removed from the reports before making a loan application to buy Phoenix or Scottsdale area real estate.

Also read this article...."Questions To Ask Your Lender".

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