Secret # 3 for a Successful Mortgage Application: Track Your Credit Score

Even if you pay your bills on time, simple errors can damage your credit score.

Most people know to check their credit scores before they start house hunting, but find they face an unpleasant surprise when they apply for a home loan – their credit score is too low. Unfortunately, a missed payment date or an erroneous collections report can bring down your credit score. Compounding the damage is the fact that the more recent the negative credit information, the greater the effect it has on your credit score. Remember, most lenders have minimum credit score requirements and a lower score could eliminate any chances of you getting a mortgage

What to Do if You Find a Mistake in Your Credit Report

If you find an error in your credit report, you need to contact the creditor that is reporting the erroneous information and work with them to get the information corrected. Even if negative credit information is correct, sometimes adding an explanation about the reason for the late payment can help your application. A mortgage expert can help you understand the home lending process so you can understand different ways to offset minor credit issues.