| If you have a poor credit rating, and nearly half of | | | | have at least six months of on time payments on your |
| Americans do, the first thing you need to do before | | | | credit report. That means paying all of your bills on |
| thinking about a mortgage is tune up your credit. You | | | | time. Mortgage lenders look at your repayment history |
| need to request credit reports from each of the three | | | | when determining how much of a risk you are for |
| credit reporting agencies. The credit agencies are | | | | lending money. The fewer late payments you have on |
| Equifax, Trans Union, and Experian. Don't pay for your | | | | your record, the better. |
| credit reports; recent legislation requires each of them | | | | Next, work to lower your debt-to-income ratio. There |
| to provide one free copy of your credit reports every | | | | are two ways to accomplish this. One way is to |
| year. You can access these free reports at the | | | | increase your income by getting a higher paying or |
| website | | | | even a second job. The next way is to reduce your |
| Once you have your three credit reports carefully | | | | debt. Paying down the balances on your credit cards |
| examine them for errors. If you find errors you will | | | | and closing the accounts of cards you do not use will |
| need to dispute the errors with the corresponding | | | | do wonders for raising your credit score. |
| credit reporting agency. The credit reporting agencies | | | | This credit score make-over will take you about six |
| (Equifax, Trans Union, and Experian) all have websites | | | | months to complete. You need to allow this long for |
| with detailed procedures for disputing errors. Once you | | | | the credit agencies to correct any errors and to build |
| have verified your credit reports are accurate or | | | | up a solid record of on-time payments. Once you have |
| disputed any errors you need to focus on your bills. | | | | done this you are ready to start shopping for a |
| Before applying for a mortgage you should try and | | | | mortgage loan. |