STEP #3 Check Your Credit Report

Before  applying for a mortgage, it is important to find out how is your credit history. You can request a copy of your credit report from all three major credit reporting agencies: Equifax, Experian, and Transunion. You can also get one free report in a year from www.annualcreditreport.com. The report will detail your credit history, including credit cards, loans and any court judgments or collection notices. When you receive the credit  report, take following actions.

• Verify that all the information is reporting accurate.
• If you find a discrepancy, write a letter to the credit bureau to correct the entry.
• Check to see if you have at least 3 creditors reporting for 12 or more months
• Check to see if you have at least three trade lines open and active for 12 months.

Additionally, you should avoid incurring some types of new debts (like car loans) right before you try to qualify for  a mortgage.  

All three credit reporting agencies can be reached by following:

Equifax 1-800-685-1111 www.equifax.com

Experian 1-888-397-3742 www.experian.com

Trans Union 1-800-888-4213 www.transunion.com