Home Mortgage Refinancing Procedure: Credit Check

Home Mortgage Refinancing and a Credit Check -- An Intro

If you are applying for home mortgage, you have already gone through the credit check procedure and know what a headache it can cause. You have probably seen what kind of advantages or trouble that three digit number—you credit rating—can cause. You probably also know that errors on your credit report can creep up without you knowing, and cause you to lose loans and other credit you should be eligible for.

Get a Copy of Your Credit Report

Before you apply for home mortgage refinancing, get a copy of your credit report. Because all the big three credit reporting agencies—Equifax, Experian, and TransUnion—and comb them carefully for errors and make a detailed list of them. If you find problems, there are steps you can take to correct them.

Disputing Errors in Your Credit Report

First, notify the bureaus in writing. Get this done immediately—fixing everything is going to take a couple of months or more, so start the process. Notify the creditor as well, and take the necessary steps to getting this bad information off your credit report. Whatever you do, don’t agree to pay something off that you don’t owe just so you can make things happen faster—this amounts to agreeing to the bad debt, and it will follow you for seven to ten years.

Get Letters from Creditors

After you have disputed the debt successfully, get a letter from the creditor and the reporting agency that the debt is cleared, and have them issue your new credit score. If you don’t make sure all parties are notified with proof, the information will likely stay on your report and affect your score.

Make Sure Your Credit Report is ... Yours

Also make sure that your credit report isn’t confused with someone else’s of the same name. Always dispute those charges in writing and include as much information about you as possible so they can differentiate the two of you. Make a list of the accounts that are yours and submit it with your personal information.

Applying for Home Mortgage Refinancing

Once you have your credit report cleaned up and ready to submit, you are ready to apply for your loan. Fixing each error on your credit report is critical, and not only affects the interest rate you will get but also whether or not you will even get the loan. So don’t back down from this step just because it seems daunting—the future of your loan depends on it.