Mortgage Refinancing Tips: Cleaning Up Your Credit Report
Applying for Home Mortgage Refinancing:
Your First Step
If you are applying for home mortgage
refinancing soon, the first thing you should do is check
your credit report. Even if you have made all payments
on time, been responsible, etc., you may have errors
or some confusion on this report that will lower your
score substantially. It will pay to get it cleaned up.
In fact, many people check their reports every year
just to prevent problems later on.
Getting a Copy of Your Credit Report
You will first need to order a copy
of your report. You should order one from all three
of the major reporting agencies, Experian, Equifax,
and TransUnion. This is because they may have slightly
different reports, and you will need to clear them all
before applying for your new loan—a less-than-ideal
rating not only affects the interest rate you will pay,
but whether you will even get the loan.
Check for Discrepancies in Your Credit
Once you have you reports, make a list
of discrepancies on all three. There will be different
reasons for the errors, but you should notify creditors
as well as the reporting agencies of every one of them.
Dispute these charges and be prepared to back up your
claim. Start this process immediately—it could take
months to clear up some issues.