| Review Your Credit Score.Nearly every bank, credit | | | | home.Avoid Credit Applications.In the weeks leading up |
| union, and mortgage lender relies on a three digit score | | | | to your home purchase, you may consider switching |
| provided by one of the three major credit bureaus to | | | | banks or responding to attractive credit card offers. |
| help them make lending decisions. A credit score can | | | | Resist the urge to earn those frequent flyer miles, |
| range from the perfect 850 all the way down to the | | | | because a flurry of applications can show up on your |
| abysmal 300. Scores under 720 may not qualify for | | | | credit report simultaneously. Therefore, lenders may |
| the best interest rates, so you should check your credit | | | | grow concerned about potential identity theft. Even |
| scores with all three bureaus before shopping for a | | | | worse, lenders might assume you've lost control of |
| loan. You may discover you have some cleaning up to | | | | your spending, making you an unsuitable candidate for |
| do before you can take advantage of a great loan | | | | a home loan.Do All Your Shopping on the Same |
| deal.Scan Your Report for Mistakes.Though some | | | | Day.For the same reasons, you should choose one |
| consumers struggle with debt, many more would-be | | | | day to make inquiries from your favorite mortgage |
| borrowers suffer needlessly because of mistakes | | | | lenders. A few weeks after your inquiries, your |
| they made in the past or mistakes that credit bureau | | | | applications will show up on your report and drag |
| systems made when compiling their reports. To avoid | | | | down your score by a few points. Because the |
| embarrassment and wasted time during the loan | | | | bureau assumes that every application may result in |
| origination process, you should review your report | | | | an approval, the amount of your potential debt load |
| carefully before you start shopping for loans. Dispute | | | | increases significantly. In addition, the market changes |
| any inaccuracies both with the credit bureau and with | | | | so frequently that quotes made on different days |
| the creditor using certified mail. If you find any long-lost | | | | cannot be compared directly. Be prepared to make |
| bills you left unpaid, pay them. A bill as insignificant as | | | | your phone calls, run the numbers, and accept a locked |
| $100 can actually stall or derail the closing process, | | | | pre-approval all on the same day. |
| costing you the chance to buy your dream | | | | |