10 Things You Need to Know Before Getting a Mortgage

Is Your Credit in Good Shape?

There are three major credit reporting agencies in the U.S. Each of these compiles a report which contains information affecting your credit score based on previous credit accounts, open accounts, and debt to income ratio. This is known as a FICO score and it will have a major impact on your ability to get a mortgage loan.

Equifax, Experian, and TransUnion are required to give each individual one free credit report per year. Before you begin mortgage shopping you need to know your FICO score, clear up any errors on your credit report, and pay off any outstanding collections or credit accounts if possible.  The better shape your credit is in, the easier it will be for you to get a mortgage.