If you were to pick one key rule to follow when shopping for a mortgage loan, that rule
would be: Think credit first.
One of the first things the mortgage banker or broker will do is pull a copy of your credit
report. Lenders take a close look at your credit history to determine whether to take the
risk of lending you money.
"More than ever, lenders and underwriters have been looking at the credit of potential
borrowers, and that will affect: a) their ability to get a mortgage and b) the price at
which they do," said Steve O'Connor, senior director of residential finance at the Mortgage
Bankers Association of America.
Even before you go house hunting, it would be wise to obtain a copy of your credit report.
This way there will be no surprises when you're mortgage shopping, and you will have the
time you need to correct any errors in the report.
For detailed advice on how to get your credit in order, check out: Your Credit: The
basics.
Tip
For a married couple, also request your spouse's credit report.