If you are planning to be a homeowner in the near future, you should access and check your credit report before starting to look for a home. Most lenders usually prefer to check your credit report before considering your application when you apply for a loan. The information in your credit history helps the lenders in deciding your credit worthiness and how much credit to offer you in case of a loan approval. Your credit score will also decide which interest rate you are eligible for. 

The first critical step is to review your credit report to check for any errors.  Unfortunately, many people fail to take this all important first step. Instead, they wait until they have applied for a mortgage loan to find out from the lender that there are problems with their credit scores.

By checking your credit score before you apply for a mortgage loan you gain the opportunity to find out if there are problems which you can correct and discrepancies that need to be removed. There are three national credit reporting agencies that you can choose from: Experian, Trans-Union and EquiFax. Remeber that you are also eligible for a free credit report annually by law, click here to get your free 3-in-1 credit report.

Review your credit report carefully for any errors and if you find any discrepancies you have a right to contest it. You will need to contact the credit reporting agency and explain why you believe the item is incorrect and thus you will need to provide documentation such as receipts and cancelled checks can help your claim. Bank Rate offers some great advice on fixing these errors along with the forms you will need. Although this is will be an inconvenience it is better to get everything cleared up before you fall in love with a home only to be denied a loan due to problems with your credit report.