credit report - Mortgage Checklist - Three Things to Do Before Applying for a Mortgage

Applying for a mortgage is huge step for anyone to take. Before you begin the process of choosing a lender and applying for a mortgage, there are three things that you should do: Decide Which Mortgage is Right For You There are two basic types of mortgage loans'those that come with fixed rates and those that come with adjustable rates. With a fixed-rate mortgage loan, your payment will remain the same for the life of the loan. With an adjustable-rate mortgage loan, your payment will fluctuate based on the current interest rate. Determine How Much You Can Afford Before applying for a mortgage, you should determine exactly how much house you can afford. To start, evaluate your incoming and outgoing funds. This will help you determine how much is available for a mortgage payment each month. You may also want to consider using one of the many different mortgage calculators that can be found online. These calculators can help you to quickly compute estimated mortgage payments. Check Your Credit Report When you apply for a mortgage, the first thing your lender will do is check your credit. Knowing your credit score gives you the opportunity to determine how likely you are to get a mortgage before you apply for it. It also helps you anticipate how high of an interest rate you will pay on your mortgage loan. Because your lender will be using this report to judge you, it only makes sense for you to pull your own credit report and see exactly what they will be looking at. Pulling your report prior to applying for a mortgage will also give you an opportunity to correct any mistakes before your lender sees them. Here is a list of recommended Home Mortgage Lenders online. It's important to use a reputable lender online to make sure your personal information is secure. As you research various loans, take a moment and look at ABC Loan Guide's list of Low Credit Score Home Mortgage Loan lenders. You will also find companies that have Free Credit Repair Information to help you find the perfect home loan. Article Source:http://EzineArticles.com/?expert=Carrie_Reeder credit report - Understanding Your Credit Report If you've been wondering what's in your credit report, you're probably way over due for a look at your credit history and score. But with so much information packed into each credit report, it can often be frustrating trying to decipher all of the codes, abbreviations and numbers within them. If you're not sure how to read your credit report, you're not alone. It can be tough trying to figure it all out, so keep reading to gain a better understanding. For your convenience, many credit reports list personal information, credit history, public records and inquiries in different columns. This will make it easier for you to read and understand them. If you're not sure what FICO means, it stands for Fair Isaac Corporation and it's the most popular scoring system used by lenders. You can expect to see your full name, address and social security number listed on your credit report. As you skim this information, check to see if everything is correct. As you go down this page, you will also see previous addresses listed along with your date of birth, phone number and employer name. Check the public records section of your credit report if you have had credit problems in the past, such as collection accounts and bankruptcy. Don't forget to go through this section, because if any of the listed information is false, your credit rating could be greatly affected. . The credit history portion of your credit report will contain a list of all the credit accounts you've ever opened and closed. They will detail if you have paid on time or been late and might offer remarks, such as "pays on time" or "pays 30 days late." The three major credit bureaus, Experian, Equifax and TransUnion have tried to make reading credit reports easier on consumers by making their information less complicated. Anytime you have applied for a line of credit in the past, it has been detailed in the inquiry section of your credit report. Review this section to see just who has been asking for a copy of your credit report. If you see anything suspicious, report it, but keep in mind that anytime you apply for an apartment, personal loan or credit card, your credit has been run. It might take you a few tries to fully comprehend your credit report, but you'll get there. The important thing is that you are keeping track of your credit history and rating and that is a wise investment for your future.