For many of us debt is a way of life . It’s hard to live these days without Installment payments and credit cards. These are useful financial tools. But your credit can eventually control you if you don’t control your credit,. Especially when you apply for a mortgage. Your credit does not need to be perfect to qualify for a mortgage, but it must clearly show that you are willing and able to pay your debts.
Lenders will look at your credit report when you apply for a mortgage. They need to know if you’re responsible about paying your debts. Once per year you can obtain your credit report at no cost from the 3 major credit bureaus.. Most financial experts suggest that you review your own credit report before applying for a loan.
Look at your credit report carefully for any past due amounts or “charge-offs”. This could mean a bill was never paid. If your credit is poor, it can prevent you from qualifying for a mortgage. It can also cause you to pay a higher interest rate. Verify that the information reported about you is correct. If you disagree with any of the information about you on the credit report, contact the credit bureaus to contest the reports.