Get a Free Copy of Your Credit Report

I talk with people who ask the initial questions like "When should I start looking for a home?" or "Whats the first thing I need to do?"  I always advise them that we will usually begin the pre-approval process about 60-45 days from when the borrower is planning to make a formal offer.  But before that, I always say, "Go ahead and get a copy of your credit report.  This way we can address any problems or misinformation that might effect your pre-approval when you're ready."  The major reasons I suggest this are:

1. Its always better to be proactive about your credit, than reactive.  "Reactive" usually costs time and money.
2. The borrowers credit inquiry has no repercussions.  By law, a borrower can receive a free credit report once a year, specifically for the reason of reviewing the information for accuracy.
3. You'll be prepared and ready to answer questions that your mortgage broker will ask.  "Are you aware of the collection that was filed 2 years ago?"  "Has this tax lien been satisfied?"
4. Also, you'll have a better idea of your credit score.  You can communicate in an educated manner about the loan programs you do or don't qualify for.

Naturally, the next question is, "How can I get a copy of my credit report?"  There are 2 ways to do this.  You can either call the credit bureaus directly at :

• TransUnion - (800)888-4213
• Experian - (888)397-3742
• Equifax - (800)685-1111

And request a copy of your report.  You'll have to go through a little automated system mumbo-jumbo, but ultimately, they'll send it to you in the mail.  They'll usually include information on how to correct or dispute the information within the report.  Or, you can got the websites like Annual Credit Report.com, or myFICO.com.  These sites will get a report from all three bureaus for you, however these reports usually don't have scores associated with them.  But, for $9.00 or $10.00 they'll calculate the scores for you.  Also, remember (with the exception of Annual Credit Report.com, which is operated by Federal Trade Commission)that these are private companies, so be prepared to hear about their credit repair services, credit monitoring services, or other solicitations.

In any event, staying familiar and informed with your credit profile is a necessity for a hundred reasons.  Whether your shopping for a new home or any other large expenditure, its always a good idea to know your credit situation before you start making offers or applying for financing.

Any other credit pro's have more suggestions?  Comments always welcome.

Your Mortgage Professional for Missouri