So, youve found the perfect home. Youve already decided where to place each piece of your furniture inside the home, and in your mind, all of your family photographs are hanging alongside the stairwell. But waitdo you know that even if you believe that your credit report is spotless, it could negatively affect your chances of getting that home mortgage approval?

The credit bureaus handle hundreds of thousands of credit reports, and its only logical that they will make mistakes. In fact, studies show us that there are some types of errors on at least 50 percent of all credit reports.

Could an error be lurking on your report?

Heres a simple step-by-step guide to ensure that your credit report reflects exactly what it should.

Step One: Avoid a Bad Credit Report by Requesting a Copy of It

Under the law, you are entitled to a copy of your credit report from each of the three credit reporting agencies. You should simply submit a request in writing or visit their web sites and request a copy.

Step Two: Check the Personal Information

Maybe your name is Jane Smith, but the agencies have you listed as Jayne Smith. If you dont think that it matters, youd better think again. If the agencies have a miss-spelling in your name, the wrong address, reversed digits on your social security number, or even wrong employer information, it could mean bad news for your report. If the person who they have you confused with makes a late payment, then it will appear on your report. Whats worse, if they file for bankruptcy or default on a car loan, it will take some time to sort out the erroneous information once its found its way onto your report. Avoid all of this, and report any bad information now.

Step Three: The Credit Information

It may be too late, and you may find that there are loans or other items on your report that youve never taken out. In addition, you may find that late payments are on your credit report when youre sure that you made them on time. If you find such erroneous information, then youll need to send the credit reporting agencies a letter explaining the error, along with any proof or documents that you have that will back up your claim. They are required to investigate your complaint and report back to you with their findings.

Its important to do all of this before you apply for a home mortgage. It will not only reduce the amount of time that it takes to get an approval, but it could positively affect the interest rate that you end up with.

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