To check mortgage credit, start by obtaining a free credit report from once annually. Review the report for errors in accounts, balances, or payment history, which can impact your credit score. Next, use a FICO score calculator or a lender’s tool to estimate your mortgage eligibility and interest rates. Monitor credit utilization ratios (ideally below 30%) and address any delinquent accounts. Finally, contact lenders to discuss pre-approval and loan options based on your credit profile.

Checking mortgage credit is critical because creditworthiness directly influences loan terms and approval. A FICO score above 700 typically secures better mortgage rates, while lower scores may lead to higher interest or denial. According to the Consumer Financial Protection Bureau (CFPB), approximately 20% of consumers have at least one error on their credit reports, which can reduce scores by up to 100 points. For example, a score of 650 might qualify for a 4.5% interest rate on a 30-year fixed loan, whereas a 750 score could secure 3.75%, saving over $100 monthly on a $300,000 mortgage. The Federal Reserve reports that 25% of mortgage applicants with scores below 620 are denied financing. Regular credit reviews help catch inaccuracies, improve scores, and ensure competitive loan offers. Lenders also consider payment history and debt-to-income ratios, which are 50% of a FICO score. Proactive monitoring can prevent surprises during application and reduce long-term borrowing costs.