If you have been sitting on the fence as to whether or not to buy or refinance, now could be a good time to get organized and be ready to take action. One of the initial steps is to review your credit status. Discovering your dream home only to face delays due to an error in your credit report can be frustrating and prevent you from securing the property you want. Beyond affecting your mortgage approval, credit issues can also impact your ability to obtain insurance, credit cards, rental leases, and potentially even job opportunities.

We’d like to believe that credit reporting agencies are always accurate, but that’s not the case. Over the years, many of my homebuying clients have discovered errors or inaccurate information in their reports. You can obtain a free annual credit report from AnnualCreditReport.com, the only website authorized by Federal Law to provide this service. This site allows you to access credit reports from Equifax, Experian, and TransUnion so you can review any discrepancies between them.

By reviewing your credit report, you gain valuable insights into several key areas. First, you’ll see what your potential mortgage lender will see, allowing you to address any inaccuracies or missing information before applying. Second, you can check your current credit score, which can affect the type of mortgage you qualify for and the interest rate you receive. Third, monitoring your credit helps you detect any signs of identity theft, which is crucial for protecting yourself against fraudulent credit activity.

Once you obtain your credit report, verify that your basic information, such as your name, address, and Social Security Number, is correct. Then, check that all account and loan details are accurate. If you find any errors, contact both the business responsible for the information and the credit bureau that issued the report. When applying for a new mortgage, most licensed Mortgage Loan Officers can assist you in addressing and resolving these issues.

When using your credit, prioritize buying a home first. It’s significantly easier to purchase a home before taking on other large consumer debts. For example, informing your Mortgage Loan Professional that you recently bought a new car with a $1,000 monthly payment just days before closing on your home is likely to cause them considerable concern. While this might not be an issue for everyone, it could be a major obstacle for many first-time buyers.

Your professional Mortgage Loan Officer and Realtor® can assist you throughout the process to ensure a smoother home purchase.

Duane graduated with a degree in business and a major in real estate from the University of Colorado in 1978. He has been a REALTOR® in Boulder since that time. He joined RE/MAX of Boulder in 1982 and has facilitated over 3,000 transactions over his career. Duane has been awarded Realtor® Emeritus by the National Association of REALTORS and the Circle of Legends by RE/MAX LLC. Duane is also the author of two books, REALTOR for Life and The Velocity of Wealth. You can reach out to Duane at BoulderPropertyNetwork.com or at DuaneDuggan@boulderco.com 03