The Oswells

“I don’t have a problem with credit,”a potential new home buyersays.“I pay my bills on time. I never have trouble getting a loan.”That may be true.However, according to several surveys,mostpeople are surprised by at least one piece of information intheir credit report. And it only takes one derogatory item tocreate an obstacle to getting the lowest mortgage ratepossible, or even getting a mortgage at all.That’s why it’s important to check your credit report beforeyou shop for a new home. You will then have the opportunityto deal with any unexpected issues.For example, you may discover an error. (This isn’t unusual) Ifyou do find there is a mistake in your credit report, inform thecredit bureau immediately.They are required, by law, topromptly make a correction.If there are late payments noted on your credit report, you canwrite a letter of explanation to the credit bureau telling yourside of the story.This will accompany the credit informationthat goes to your lender. Assuming everything else in yourcredit report is fairly good,most lenders will accept areasonable explanation for late payments, such as being laidoff from a job, an extended illness in the family, or militaryservice overseas.How do you get your credit report?There are three major credit bureaus in North America:• Equifax (www.equifax.com)• Trans Union (www.transunion.com)• Experian (www.experian.com)All have websites that allow you to order your credit report fora reasonable fee. It’s a good idea to order all three creditreports as not all companies report credit information to allthree bureaus.Getting your credit report, and checking that it’s accurate,willmake the home buying process go a lot more smoothly.