Check out this useful info from U.S. News & World Report – there is more on their website
Before you apply for a mortgage, you should make sure you’re in a good position to qualify for the best loan possible. It’s a good idea to check and improve your credit, compare lenders, get preapproved and make a plan for your down payment.
1. Check and improve your credit report. Lenders will check your credit report, so you want to identify and fix problems with your credit report before you apply.
Order a free copy of your credit report at AnnualCreditReport.com. Your report will list your borrowing history, including any negative marks. You can pay extra to access your credit score with your report. Alternatively, some websites, banks and credit card issuers give customers free credit score access.
Check your report for errors and contact the credit bureau if you find any. You can take steps to improve your credit score, such as always making your monthly payments on time, paying down your balances and not applying for other loans and credit cards.
Although improving your credit before applying for a mortgage can help you with approval and better terms, don’t rule yourself out of applying just because you have a less-than-perfect credit score, says Rob Sickler, loan originator with Mortgage Network Solutions. You can make up ground by finding the right lender and putting together a solid mortgage application.
- Never send confidential information by email.
- Contact the lender or title company directly before sending any money.
- Don’t open email attachments unless you know what they’re for.
- If you sent money as part of a scam, contact your bank or money transfer company immediately to try to cancel the payment.
Also be sure to be aware of your rights as a borrower to make sure you receive fair and correct treatment.