Why Review Your Credit Reports Before Applying?

A credit report contains information about your credit history. Mortgage lenders may review this information when deciding whether you meet a loan program’s requirements.

Your reports may include:

• Credit cards and loans
• Account balances and credit limits
• Payment history
• Collection accounts
• Current and former addresses
• Companies that reviewed your credit

How to Request Your Free Credit Reports Online

1. Go to AnnualCreditReport.com.
2. Select the option to request your free credit reports.
3. Enter your name, address, Social Security number, and date of birth.
4. Request reports from Equifax, Experian, and TransUnion.
5. Answer the identity-verification questions.
6. Review each report and save a copy for your records.

Important: AnnualCreditReport.com is the website authorized by federal law for requesting free reports from the three nationwide credit-reporting companies. Be careful with other websites that may require a purchase or paid subscription.

How to Request Your Credit Reports by Phone

If you cannot complete the online process, call the Annual Credit Report Request Service at:

877-322-8228

Follow the recorded instructions. You may need to provide:

• Your full name
• Your current address
• Your previous address if you recently moved
• Your Social Security number
• Your date of birth

You can ask for reports from all three credit-reporting companies. Reports requested by phone are generally mailed to the address provided after your identity is verified.

Be Prepared for Identity Questions

Some of the security questions can be difficult because they are based on your personal credit history. Only you may know the correct answers.

For example, you may be asked where you lived five years ago. You may receive four choices, but only one will be correct. You could also be asked about a former lender, loan payment, or account.

Read every question carefully. Do not guess. Incorrect answers may prevent you from receiving your reports online.

What Should You Check on Your Credit Reports?

Review all three reports carefully. The information may not be identical because creditors do not always report to every credit-reporting company.

Look for possible errors

• Accounts you do not recognize
• Late payments you believe are incorrect
• Incorrect balances or credit limits
• Closed accounts listed as open
• The same debt listed more than once
• Incorrect names, addresses, or employers

If you find information that appears incorrect, follow the dispute instructions provided by the credit-reporting company. A dispute does not guarantee that an item will be removed. Accurate information generally cannot be removed simply because it has a negative effect.

Do Free Credit Reports Include Credit Scores?

Free credit reports generally do not include credit scores. However, the reports allow you to review the information that may be used to calculate your scores.

A score shown by a bank, credit card company, or consumer website may be different from a mortgage credit score. Credit scores can vary based on the scoring model, credit-reporting company, and date calculated.

Key Takeaways

• Use AnnualCreditReport.com or call 877-322-8228.
• Request and review reports from all three credit-reporting companies.
• Checking your own reports does not lower your credit scores.
• Free credit reports generally do not include credit scores.
• Review your reports for errors before applying for mortgage financing.
• Protect your personal information and use a secure method when sharing documents.

Prepare Before Applying for a Mortgage

Reviewing your credit reports early may give you time to understand your credit history and address possible errors. It does not guarantee loan approval, a particular interest rate, or specific loan terms.

Have Questions About Preparing for a Mortgage?

Contact Sam Kader at Pacific Coast Financial LLC for an educational, personalized consultation. I can help you understand the mortgage process and discuss loan options that may be available based on your individual circumstances.

Sam Kader, NMLS #130505
Pacific Coast Financial LLC, NMLS #78982
Phone: 206-393-0684

Mortgage Lending Disclaimer

This article is provided for general educational purposes only and is not legal, tax, credit-repair, or financial advice. It is not a commitment to lend, an offer of credit, or a guarantee of approval, interest rate, payment, savings, or loan terms.

Loan approval, interest rates, costs, and terms depend on borrower qualifications, credit history, income, assets, debts, property eligibility, loan-program requirements, and underwriting approval. Programs and guidelines are subject to change. Pacific Coast Financial LLC, NMLS #78982. Sam Kader, NMLS #130505. Equal Housing Opportunity.