Improve those three figures to better position yourself for securing a home loan.
Although you may have saved up for a down payment on a new house, if you have an average credit score, you may have a hard time qualifying for a mortgage and buying the home of your dreams. The good news is that there is a lot that you can do to improve your score. Check out these tips for a much better chance of getting approved and locking in an affordable interest rate.
Pay Off Your Credit Cards
Think about it. You’re trying to prove to a lender that you can have a reasonable amount of debt, but pay it off in time. If you miss a payment, even if it was an honest mistake, it could significantly impact your credit score. Ensure that you pay bills as soon as they come in the mail, or set up an auto charge on your account so that the money is always deducted from your account before the deadline. Don’t forget to do this on all of your debt, including credit cards, student loans, and auto loans.
Review Your Credit Report
Get a free credit report, observing each report closely for any mistakes or discrepancies. Mistakes do happen and you don’t want to be the last to know. If you do spot a mistake, resolve it right away.
Don’t Take on Any More Debt
Even though you may want new furniture for your new home and a sparkling new car for the driveway, it’s best to hold off on acquiring any more debt until you’ve landed a mortgage. You want your credit report to look as clean as possible when you send in your application, and many new inquiries may raise red flags for lenders.
Contact Dean Rathbun when you’re looking to secure the right mortgage for your needs. We work with your credit score and financial picture to ensure that you lock in the right home loan to land that house of your dreams. Give us a call to get started.