When you are going to apply for a home loan, your credit score will have a large impact on your qualifications, as well as the mortgage rate quotes you receive.
But it is not enough to just look at your credit score. The score is a numerical representation of your credit. But the only way to understand the data that is used to generate a credit score is to take a look at the information on file in your credit report.
Requesting Your Credit Report
You have three credit reports from each of the three major reporting bureaus. These are Equifax, Experian and TransUnion.
Every year, you are entitled to a single free report from each of them, for a total of three free credit reports per year.
If you want to view one of your reports, you can request it at AnnualCreditReport.com. This will get a paper copy sent to you. Sometimes, you may also be offered a chance to view the reports online. This feature may be available more than three times per year. It also has no charge.
We suggest that you only order one of your credit reports at a time (at least initially); that way, you can order the others during other points of the year if you need them.
How to Correct Errors in Your Credit Report
Your credit report contains the information used to generate your credit score. As you read through your report, you can find out about any negative entries on your file.
If you discover that there is an error on the credit report, you can contact the bureau in question and dispute the error.
To successfully get the incorrect negative entries expunged, you will need to document your contradicting claim.
Be sure to also send a brief, but thorough explanation in writing about what is going on.
The good news is that after you submit this type of complaint, the credit bureau has to address it within 30 days. If they decide in your favor, they will get rid of the incorrect entry, and send you a free, updated credit report.
If you are still having issues with your credit score after going through this process, then you may have to access your other two credit reports from the remaining bureaus.
Those credit reports may have different entries in them, requiring you to correct additional errors by contacting those two bureaus.
We Can Answer Your Questions About Credit Scores and Mortgages
Contesting your credit reports requires a bit of legwork, but it can result in an increase to your score if there are negative, inaccurate entries. Every little bit you can push up your score can help you qualify for more competitive mortgage rates.
If you are shopping for a home in Oakhurst or elsewhere in California, Granite West Funding can help you find a loan that is ideal for your needs. To get started, please call us at (559) 540-2275.
