Your lender thoroughly examines your
credit
report
when it processes your application to determine whether
or not you’re a reliable borrower.
Your lender will want to see a strong history
of repaying borrowed money. If you’ve been prompt in paying
your credit card bills, car payments, and other loans, you’re
more likely to qualify for a
mortgage.
Most experts suggest you get a copy of your
credit report before you apply for a
major loan. Then you’ll know ahead of time about
potential problems that might mean a lender would turn you down
for credit or offer credit only if you pay a higher
interest rate.
Or you may find errors that can be corrected before they become
problems.
You
are entitled to a free copy of your credit report from each of the
three major credit bureaus — Equifax, Experian, and Transunion — once a
year. To obtain your free reports, you have to request them through the
Annual Credit Report Request Service online at
www.annualcreditreport.com
or by phone at 877-322-8228. If you request your credit report directly
through one of the three credit report agencies or through another
service, you’ll pay a fee, unless you’ve recently been denied credit,
are unemployed, on public assistance, or have reason to suspect fraud.
Dwight
P. Robinson, Senior Vice President, Corporate Relations,
Freddie Mac
Not just the facts
The credit bureaus — Experion, Equifax, and Transunion — pass along the data they collect and provide a credit score based on a number of factors in the report. Individual lenders decide whether you meet their standards, based on the report, the score, and their own criteria. For example, you may have to receive a certain credit score to qualify at all, or to be eligible for the most favorable rates. You may be able to obtain a copy of your credit score, together with your credit report, from one of the major credit bureaus for an additional fee.
Dwight
P. Robinson, Senior Vice President, Corporate Relations, 