Strong credit score can make the difference in getting approved for a mortgage. A better credit score will typically provide you with access to lower rates and more favorable loan terms.
FIRST and foremost, pay your bills ON TIME.
This is the single most important factor that goes into determining your credit score. Late payments can have a significant negative impact on your score, so make sure you’re paying your bills on time every month.
SECOND, keep your credit utilization LOW.
This refers to the amount of credit you are using compared to the amount of credit you have available. Ideally, you should aim to keep your utilization below 30%. This shows lenders that you are responsible with your credit and can manage your debts.
NEXT, AVOID opening new credit accounts right before applying for a mortgage.
Each time you apply for credit, it shows up on your credit report as a “hard inquiry”. Too many of these can lower your score, so it is best to avoid opening new accounts until after you have secured your mortgage.
It is also important to periodically review your credit report for errors. Mistakes on your credit can drag down your score, so be sure to check for inaccuracies and report any errors to the credit bureau as soon as possible.
By following these credit tips, you can IMPOVE your chances of qualifying for the mortgage you need.
Remember, good credit takes time to build, so start improving your score as early as possible. With patience and perseverance, you can achieve and maintain the credit score you need to secure your dream home.
GIVE US A CALL TODAY TO DISCUSS ANY QUESTIONS ABOUT YOUR CREDIT OR THE MORTGAGE QUALIFICATION PROCESS.
WE ARE HERE TO HELP!
Comments