One of the most important factors in determining whether you qualify for a new mortgage is the current strength of your credit. Your credit report, along with your asset statements, proof of income and job history are the primary data that lenders use to decide whether they’ll approve you for a mortgage, how much that mortgage will be, what kind of an interest rate you’ll get, and how much your loan fees are likely to be.  Looking at your credit report before you actually need to apply for a mortgage loan can sometimes give you the time and insight you’ll need to help clear up problems (should they exist), and prepare you for what kinds of challenges that may arise during the loan process.

There are several ways you can get a copy of your credit report. The three major credit monitoring services, Equifax, Experian and TransUnion, are required to offer you a copy of your credit report for free once a year. If you have received a copy of your credit report already in the last 12 months, you can get another copy at a cost.

One simple way to get your credit report is to visit the site AnnualCreditReport.com. This is the authorized site that allows consumers to get their credit report from all three services for free. This site will require you to verify your identity, and then provide you with access to your credit report.

Alternatively, you can call the Annual Credit Report phone line at 877-322-8228 and receive a copy of your credit reports via mail.

A key item not included with your free annual credit report is a credit score, which is a must for mortgage underwriting.  You can get a credit score, as well as other services related to your credit report directly from the major bureaus, or from a third party site that provides paid access to these services.  However, scoring algorithms between lender requested mortgage reports and consumer requested reports have seemed to differ in the past.  Meaning, the scores you pay to get may actually differ from the scores a lender gets when requesting a 3 bureau credit report for a mortgage loan.

During the mortgage pre-approval process for clients contemplating a new home purchase or refinance, I often obtian a 3 bureau credit report, review it with my clients, and provide them with their credit scores free of charge.