Check Your Credit Before a Mortgage Refinance

If you are getting ready to refinance your mortgage, there are a few things that you need to do first. Before you even approach a lender, you want to make sure that your credit is in good shape. It doesn't matter if you are going with a new lender or you are sticking with the same one you're currently using, they will pull your credit report, so it is important to make sure that everything is reported exactly how it should be.

Everyone is entitled to one free credit report each year from each of the three major credit reporting agencies. These are considered soft inquires and they will not reduce your credit score. The three companies that you need to request your free report from are Experian, TransUnion and Equifax. You can have the reports mailed to you or you can view them instantly online and print them out so that you can have a copy for your records.

Make sure that everything is reported correctly. If you notice anything amiss, even if it is just one late payment that should not be there, you need make sure that you correct the situation immediately. The higher your overall credit score, the better chance you will have at getting approved for your mortgage refinance. Your credit history and your credit score will also determine the interest rate you are given. The lower the interest rate, the lower your monthly payment will be.

As you can see, there are plenty of good reasons to check out your credit reports. While the mortgage lenders will be doing this anyways, you want to make sure that you are able to spot the mistakes before anyone else sees your report.

Myloer is a hobby writer who usually updates his blogs every day and writes about all kinds of topics. His latest project is about interest-only mortgage calculator and you can also read his articles about 30-year fixed mortgage-rates by following the links.