 |
Your credit is an integral
part of the mortgage process. When you apply for a mortgage, you give Mortgage
Access permission to obtain a copy of your credit report, which consists of a
credit profile and a credit score. A credit profile is a statement of how you
have paid back any borrowed monies, and how you have met any other financial obligations.
A credit score, also called a FICO score, is a statistical method of determining
your credit risk.
Bad credit doesn't necessarily mean you won’t qualify for a mortgage,
it just means your interest rate and terms will not be as good as someone with
excellent credit.
Under the Fair Credit Reporting Act, you have the right to dispute the completion
and accuracy of your credit report. All disputes will be investigated and corrected
if needed. You can also make amendments to your profile if there’s something
you feel deserves further explanation, such as late payments due to medical issues,
military duty, etc. It’s a good idea to order a copy of your credit report
once a year to check for errors, and to protect yourself against identity theft.
|