Remember that a credit score amounts to a prediction of how likely it will be that you go 60 days late or more on your mortgage in the next two years. One thing that will really lower this score is if you carry high balances on revolving debt and then start making a few of the payments late. This is the pattern of a consumer who is close to getting in trouble with debt.

If there is a problem with your credit report you can consult with a mortgage professional. They can help you keep your credit report clean and advise how to contact the credit bureaus to get results.

Don’t be intimated when dealing with credit bureaus or the companies who have reported the erroneous information. Disputing an inaccuracy does not have to be a difficult procedure. Most often your mortgage professional will have copies of standard forms and example letters to guide you. Make sure to document and date all of your correspondence to and from the companies.

You should always monitor your credit report to make sure that there are no inaccuracies. If there are, you need to have them removed immediately. It’s been said that one in 4 americans have incorrect derogatory information on their credit report, and some would place this number even higher. This negative information on your report lowers your credit score, and can cost you thousands of dollars on your next mortgage loan if you don’t have it corrected.

It has been estimated that over 65 per cent of all credit reports contain errors. The key is to finding the errors on your report before you need to use the report to qualify for a mortgage or other important loan transaction.

When disputing questionable items in a credit report, always remember to dispute with all three major credit bureau agencies. When applying for a mortgage, all lenders look at items reported by all three credit bureaus.

Prior to applying for a mortgage fixing all credit report errors will optimize your chances of obtain the best financing terms available.

Most brokers work with someone that repairs credit, make sure to ask for a reference. Most credit bureaus are offering mortgage brokers a program that will tell them how to improve you credit score quickly in order to get the borrower their desired loan.

Fixing credit report errors may at times seem intimidating. However, if you stick with the process, and follow the advice of your mortgage professional, your credit score will improve.

It is critical when fixing errors in credit reports to first contact your loan officer and ask that a report be run calculating which items would result in the most improvement to your credit score if they were fixed. Do not pay off or attempt to fix anything before discussing the strategy with the loan officer and credit specialist, as paying for things like old collection accounts or contesting old accounts can actually reduce your fico score in the short run, jeopardizing your loan approval and potentially increasing your costs and monthly mortgage payments for your new program. Fix only the items specified in the strategy developed by the credit specialist and discussed with your loan officer, and your scores will increase, you will qualify for the program, and enjoy lower payments.