With interest rates fluctuating many homeowners have recognized an opportunity to lower the amount they are paying on a monthly basis and get back in control of their finances; an especially critical accomplishment during this shaky economic time period. Through a refinance on their home, homeowners are able to renegotiate the terms of their current mortgage – lowering their interest rate, locking into a rate, shortening the length of the mortgage loan, and getting cash back to pay off debt and do home renovations.

While a refinance can be a great thing and certainly save substantial money down the road, applicants must first be able to qualify for the loan program that they choose. Rather than waiting to learn their creditworthiness on the day that the loan is processed it makes much more sense for a refinance applicant to pull their free credit reports prior to even applying for the loan.

Free credit reports are offered by all three of the credit bureaus that hold our personal financial information. Through a central website – www.annualcreditreport.com – consumers can choose to get a free credit report from Equifax, Experian, or TransUnion – or all three at once.

With a free credit report, consumers can be alerted ahead of time to any information that may cause a problem through the loan application process. With some notice on this front, consumers may be able to work steadily to improve their credit score prior to submitting their refinance application.

A free credit report also provides an opportunity for consumers to ensure there is no erroneous information on their credit report; and if they do indeed find inaccuracies they can appeal to the credit bureau to investigate the matter. Finally, a free credit report can quickly alert consumers to any possible identity theft that may have occurred so that they can take the steps to rectify the issue.

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