Repair bad credit to improve mortgage eligibility

The U.S. housing market is one of the remaining sectors of the economy that has yet to experience a boost since the recent recession. The industry has been rough on homeowners, especially families who are trying to sell their properties. However, for those who are interested in purchasing a new home, the market couldn't be better.

Interest rates on mortgages are low, as are home values, making market conditions favorable to prospective buyers. However, many lenders are unwilling to extend financing to individuals with bad credit, which is why a number of consumers may want to check their credit reports before applying for a loan, Investopedia reports.

Homeowners with spotty credit scores may be at a disadvantage because of unfair marks on their credit reports. It is not uncommon for sloppy creditors and abusive collection agencies to submit questionable data to the credit bureaus who compile those credit reports. For that reason, it is important to review your consumer files multiple times each year.

If you find a questionable item that may be unfairly hampering your credit score, you may want to contact a credit repair company to help you investigate and dispute the claim. By filing a dispute letter, you may be able to repair your credit report and improve your chances of qualifying for a mortgage.