To check your credit report for a home purchase loan, follow these steps: 1) Visit to request free reports from Equifax, Experian, and TransUnion annually. 2) Review each report for errors in accounts, balances, payment history, and credit inquiries. 3) Dispute inaccuracies via the bureau’s website or mail within 30-45 days. 4) Monitor your credit score (FICO or VantageScore) using tools like Credit Karma or the lender’s portal. 5) Confirm the report aligns with the lender’s pre-approval criteria. Lenders typically pull reports directly from bureaus during application.

Checking your credit report is critical because errors can lead to loan denials or higher interest rates. A 2023 Federal Trade Commission (FTC) study found 1 in 5 consumers had at least one error on their credit reports, with 10% of those errors severe enough to cause credit score drops of 50+ points. For home loans, a 50-point drop can increase mortgage costs by 0.5%-1% annually. The Consumer Financial Protection Bureau (CFPB) reports that 25% of consumers who dispute errors see corrections within 60 days, improving their chances of approval. Additionally, 30% of mortgage applicants are denied due to credit score inaccuracies, per a 2022 Urban Institute analysis. Regular checks help catch issues like outdated accounts, incorrect debts, or unauthorized inquiries, ensuring eligibility for favorable loan terms. Lenders prioritize borrowers with clean reports, as they signal lower default risk. Proactive verification aligns with the 2023 National Association of Realtors (NAR) recommendation to review credit reports 60-90 days before applying to avoid last-minute surprises.