| If you were to pick one rule
to follow when shopping for a mortgage loan, that
rule would be: Think credit first.
One of the first things the mortgage banker or
broker will do is pull a copy of your credit report.
Lenders take a close look at your credit history
to determine whether to take the risk of lending
you money.
"More than ever, lenders and underwriters
have been looking at the credit of potential borrowers,
and that will affect: a) their ability to get
a mortgage and b) the price at which they do,"
said Steve O'Connor, senior director of residential
finance at the Mortgage Bankers Association of
America.
Even before you go house hunting, it would be
wise to obtain a copy of your credit report. This
way there will be no surprises when you’re
mortgage shopping, and you will have the time
you need to correct any errors in the report.
For a married couple, also request your spouse's
credit report.
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