Credit and Mortgage Loans

Applying for a mortgage loan can be a nerve-wracking situation. It is important that consumers go into the process knowing what to expect, especially when it comes to factors than can interfere with the approval of their loan application.

Consumers who are in the market for a mortgage loan should make sure that their credit report is correct and that they have taken any steps necessary to repair mistakes they may have made in the past. First, obtain a copy of the report from one of the three major credit bureaus. There are several ways to do this – on the telephone, over the Internet, or through the mail. Look online or in the Yellow Pages to get contact information for the bureaus.

Also, remember that if you are ever turned down for a loan or a credit card because of poor credit, you have a right to a copy of the credit report on which the decision was based. Information on how to do so is located at the bottom of the notice you receive letting you know your application has been declined.

Once you have obtained the credit report, review it carefully. There are procedures in place to protect you if incorrect or incomplete information appears on your report. If you have reason to believe there is an error, contact the credit reporting agency that provided the report with the relevant information. Assuming your claim is reasonable, they are obligated to investigate and correct any mistakes.

Before applying for a mortgage loan, contact any lenders with whom you have an outstanding balance and offer to make good on your debt. Some lenders may accept a percentage of what you owe since you came to them.