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Freddie Mac and Fannie Mae are now on board to charge mortgage loan borrowers who have low credit scores even more in financing fees. For years bad credit borrowers have been paying the price in higher mortgage loan fees simply because they had no control over their own credit profile. With the government's recent announcement of higher fees they've also published specific guidelines which show exact credit scores and the associated fees. Even more reason as a homeowner or would be mortgage loan borrower to start getting control of your own credit profile.

As the Ex Mortgage Executive, I'm always surprised at the lack of knowledge most home refinance prospects have in terms of maintaining control of their own credit report profile. Many homeowners believe they are either stuck with the credit they have or have no idea of what their true mortgage credit score is. I mention mortgage credit score specifically due to the fact that mortgage credit scores are lower than consumer credit scores. Consumer credit scores are scores used to determine creditworthiness for loans such as cars and unsecured credit, not mortgage loans.

Unfortunately most homeowners never check their credit score until after they begin the mortgage loan shopping process. As you may or may not know the credit bureaus owe you one free copy of your credit report every twelve months. Notice that I said free. It still amazes me that homeowners still approach the mortgage loan shopping process with no clue as to what is contained in their credit bureau profile. Why would anyone pay higher mortgage loan fees if they really don't have to? The answer is - as I stated above, consumers are either in the mindset that they are stuck with what they have or have no ability to change bad credit if they wanted to. That answer could be no farther from the truth.

So what should you do if you're planning on a mortgage loan refinance a new home purchase? The first thing I would suggest depending on how far out these plans for home loan financing exist is to get a free copy of your credit reports from each of the three credit reporting agencies. Each credit bureau will provide you with a three digit score in mortgage lenders use the middle score to fit you into their lending guidelines. Remember the score that you see is the consumer score and not the mortgage credit score so plan on your true mortgage credit score being lower.

Under the new Freddie Mac and Fannie Mae guidelines you'll be paying higher than normal fees for any mortgage credit score below 680. If you currently have negative items on your credit report which are holding your score lower than 680, there is a solution to your problem. The solution is credit repair however before you run off screaming in fear with all of the credit repair myths, let me say this. Legal credit repair is real and available however if you don't know the process or where to begin you could make some huge mistakes along the way. On the other hand if you do understand the credit repair process it's amazingly simple and can change your life forever.

The credit repair process entails three distinct steps. The first is getting access to all three credit bureau reports since each bureau contains different information. The next step is choosing the proper monitoring service which can alert you via e-mail every time a change occurs on one of your credit reports. Monitoring your credit report changes ties in specifically with using a credit repair service simply because negative items are disputed one by one. As one negative item is removed the credit repair service will need to be notified so they can move on to the next negative item dispute. Hence the need for credit report monitoring.