Most people today do not have the cash to purchase a home. Instead they borrow a good portion of it from a Mortgage Company, Bank or Credit Union. One of the first things the lender will do is run a Credit Report. Having "Good Credit" is the first step toward getting favorable terms on your mortgage. You can check to see what is on your credit report for FREE at http://www.annualcreditreport.com/.
If you see anything that doesn't look right, contact the credit bureau and get it corrected BEFORE you go to apply for a loan. A few years ago, I had a customer who was buying a house in Hoover, Alabama, that had an old cell phone bill with a balance of less than $2.00 that he didn't even know about (he had moved from that city and they had not forwarded the bill to him). The cell phone company had reported him late on his bill for 18 months. If he had checked his credit before he started looking for a house, he would have had time to fix it, however, he already had a house picked out and a closing date set. Because this "cloud" was on his credit, he ended up paying a higher interest rate which meant he had a higher monthly payment. So, check your credit and fix anything that is incorrect.
If you would like any information about buying a house in the Hoover, or the Greater Birmingham Alabama area, please contact me at http://www.tonibird.com/.
