Know what your credit report says before you apply for a mortgage
Shopping for the right mortgage lender can be a confusing process with many types of mortgages to choose from with different guidelines, fee structures, and so on. We HousingCoaches℠ try to make it easier for you with our recommendations, any lender you talk with will need to know your credit scores before they can make any type of meaningful suggestion regarding your borrowing options.
The problem is that if each lender pulls your credit report, the multiple inquiries can negatively effect your credit scores. Your credit score determines the level of risk that you represent to a lender. The last thing you want to do is to cause your score to drop, while shopping, increasing your risk level, and causing the available interest rate for your mortgage to go up.
You can and should pull your own credit report
Our suggestion is that you pull your credit yourself and present it to the lenders you plan on interviewing. It will give them the information that they need to quote you estimated rates and help you to determine which mortgage is right for you- all without adversely effecting your credit score.
How can you pull your report yourself? There are services available online that can pull your reports for nominal fees- anywhere from free, as part of a trial program, on up to about $75. Be careful when you are choosing one of these companies. Not all are equal. Not all will pull credit from all three credit reporting bureaus. Some make it seem like you are getting reports from all three but you may find out later it was careful wording and you now need to search elsewhere as well. As with any company, but most especially an internet based company, you need to make sure they are reputable as well. Don't forget this is the age of identity theft.
We recommend www.AnnualCreditReport.com
AnnualCreditReport.com is a centralized service for consumers to request free annual credit reports. It was created by the three nationwide consumer credit reporting companies – Equifax, Experian, and TransUnion.
AnnualCreditReport.com provides consumers with the secure means to request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies in accordance with the Fair and Accurate Credit Transactions Act (FACT Act).
AnnualCreditReport.com offers consumers a fast and convenient way to request, view and print their credit reports in a secure Internet environment. We also provide options to request reports by telephone and by mail.
AnnualCreditReport.com is the only service authorized by Equifax, Experian and TransUnion for this purpose. The three nationwide consumer credit reporting companies have always encouraged consumers to regularly review their credit reports.
Please note the following security precautions:
1. Consumers should never provide their personal information to any other company or person for requesting free annual credit reports under the FACT Act.
2. AnnualCreditReport.com will not approach consumers via email, telemarketing or direct mail solicitations.