Why is it important for a borrower to review their credit report before applying for a mortgage?

It is crucial for a borrower to review their credit report before applying for a mortgage primarily to identify and correct any errors that may affect their credit score and borrowing ability. Credit reports can contain mistakes, inaccuracies, or outdated information that could potentially lower a borrower's credit score. A lower credit score may result in higher interest rates or even disqualification from loan options. By reviewing the report, borrowers can ensure that all information is accurate and take necessary steps to dispute errors, thereby improving their creditworthiness before applying for a mortgage.

This proactive approach not only helps the borrower secure better mortgage options and rates but also enhances their overall financial health. Recognizing that credit reports are a key component in determining loan eligibility underscores the importance of this review process as part of the mortgage application preparation.