If you plan on purchasing a home in the next 6 to 12 months, it is important that you check your own personal credit score. After you submit a home loan application, your lender will not only request income information, but they’ll check your credit report and closely examine your credit history.

Even if you have enough money to purchase a home, negative information on your credit report can prevent an approval. Checking your own report beforehand is the only way to accurately know your standing. Several factors can drive down your credit score, such as:
  • Identity theft. Another person may steal your Social Security number and open credit accounts in your name. If this problem goes undetected for years, the thief can damage your personal score, thus hindering your ability to get a mortgage. But the sooner you discover identity theft, the sooner you can clean up your credit.
  • Credit report errors. Maybe the problem isn’t identity theft, but credit report mistakes. Even if you’re completely innocent and your creditor made a mistake, negative information reported in error can stop a home loan application. And some lenders will not approve your mortgage until errors are removed from your report.
This may be a lot to take in, but if you get proactive about your credit earlier, you will experience a smoother buying process. And once you qualify for a mortgage, you can start bidding on houses and looking for a Durham mover.
(Photo attributed to Flickr member @iamrealestatephotographer via the Creative Commons license.)