Your credit score directly impacts whether you will be approved for a home loan, and even if you are deemed credit-worthy, your credit score on your free credit reports will affect the mortgage loan interest rates that lenders will offer you. The lower your credit score, the higher your mortgage loan interest rate. You are essentially considered a high risk borrower the lower your credit score, even if you fall in the range of credit scores that lenders will consider for mortgage loans.
So before you begin searching for a new home, don’t put the cart before the proverbial horse and start looking at homes for sale, and getting your hopes up, especially if you have no idea what your credit score is, and what interest rates will be extended to you by various borrowers if you shop around for mortgage interest rates.
Go to the source for free credit reports online and order your credit reports now from the major three credit reporting bureaus: Transunion, Experian and Equifax. Your scores may differ slightly at each bureau, so it’s better to get your free credit reports and combine your credit scores and divide by three to give you an idea of your averaged credit score.
For a credit score faq, you should consult with the Blog at FreeCreditReportz.com and familiarize yourself with credit scores and how they are calculated. And if you find anything erroneous on your free credit reports, you should take the opportunity to correct or dispute any errors.