National Real Estate Review Board
Your Credit Report
If you’re thinking about buying a home, you need to be aware of your credit. Better credit may mean mortgage opportunities with lower rates. Your credit report is a record of money you’ve borrowed, your history of paying it back and how much open credit is available to you. It consists of:
Check your credit
Pull your credit report and double check that the information is accurate and up-to-date. If there are any discrepancies, work with the credit reporting agency to have those cleared up before you inquire about a loan.
Your Credit Score
Your credit score is a single number that helps lenders decide how likely you are to repay your debts and plays a significant role when securing a mortgage. A score ranges from 300 – 850 points and is based on:
A general guide to interpreting your score:
You are entitled by law to get a free copy of your credit report:
To get your annual free credit report, go to www.annualcreditreport.com or call (877) 322-8228. For more information about your rights regarding credit and the Fair Credit Reporting Act, visit the Federal Trade Commission Web site.
To help you build, maintain and protect your credit:
By understanding your credit and the important role it plays with securing a home loan, you’ll be on the right path to realizing your goals. Remember, strong credit will provide you with many financial advantages so it’s worth the effort to maintain it.