You credit score is a very important part of the mortgage application process and directly affects the interest rate you receive on a home loan. Borrowers with poorer credit scores can expect to pay a higher interest rate in return. Before applying for a purchase or refinance loan you should check you credit score to make sure that it is accurate and that there are not any errors. If you do find that there are errors on you credit report that are bringing down your credit score you should dispute them right away.

When you dispute an error on your credit report it is important to dispute it with both the company that is reporting the error and with the lending organization that reported that error. Once the error is resolved the organization is responsible for notifying the three credit reporting companies of the change. You can dispute an error three different ways - by mailing a dispute letter, online or by telephone.

If you choose to write a dispute letter you will want to clearly identify each item you are disputing in the letter. Provide a physical copy of your credit report along with the letter and highlight or circle the areas in question. You can also include copies of documents that support your claim. In the letter you should clearly identify each item on your credit report that you are disputing, the reason(s) why you are disputing those items and the resolution desired (that the error is either corrected or removed altogether). When you mail the letter you should request a return receipt so that you know when the letter is received.

There are three different credit reporting agencies - Equifax, Experian and TransUnion. They might not all report the same things, so an error could be reported by just one of the companies or by all three. Visit their websites to get direct contact information as to where you should mail your dispute letter, their phone number to call in a dispute or where to submit a dispute through their website.