Improve Your Credit Score So You Get a Better Mortgage
There has been plenty of talk about mortgage rates the past several weeks. Especially since they have been going up after being so dang low for such a long long time.
But you know what else makes a BIG difference in your monthly house payment?
One very big factor that is going to make a HUGE difference in the mortgage that you qualify for is your credit score. So before you start looking at homes in the Anderson South Carolina area, maybe you should take a peek at your credit score. Since you are reading this blog, I am going to assume this means you are one pretty smart cookie.
That means you know that the super important first step in buying a home is getting a Pre-Approval Letter. All mortgage lenders are going to check your score and they will use it to figure out IF you it is safe to lend you the money. Also your credit score will affect the interest rate that they are going to charge you.
A higher credit score is going to help you get a lower interest rate on your mortgage. But if you have a bad credit score, it probably means you will have to settle for a high interest rate on your mortgage. And that means less buying power for you! Plus a higher rate will cost you much much more money in the long run.
Get Those Credit Scores UP
I hate to keep saying it, but talking with a mortgage professional should happen BEFORE you start looking for a home. Improving your credit score before you get a mortgage will help you get the best rate possible.Which means you will be able to get a bigger mortgage OR you will have a lower monthly payment. You might even be able to accomplish both!
So I am sure you are asking what you should do to get your credit score up?
Tips to Help Improve Your Credit Score:
Good Things Come to Those That Wait
I had someone contact me last week that had the misfortune to give a crap load of money to some credit repair people. Don’t fall for those scam artists! It takes time to repair the damage to your credit.
Improving your bad credit is NOT something that can be done overnight. Anyone that claims otherwise could be looking to rip you off. When it comes to improving your credit score, there are no quick-fixes. I hate to break it to you, but the UGLY BUT HONEST TRUTH is that the best way to rebuild your credit is to be responsible.
There Could Be Mistakes on Your Credit Report
Most people do not know what their credit score is until they get an unpleasant surprise. So if you don’t know exactly what your credit score is today, the first step is to get a credit report. The nice thing is you can request a FREE copy of your credit report. Then you need to check it for any mistakes. Even if you have always paid your bills on time, it is possible that there might be an error that causes your score to be lower than it should be.
If You Think Nobody Cares, Just Miss a Payment
Hey we all forget things. One of the things that will bring down your score is LATE PAYMENTS. Never mind the fact that they will tack on ridiculous fees and start jacking the interest rate up. If you trust your bank to not screw up, then you can set up automatic payments so your payments are never late.
Your credit score is very important when getting a mortgage. Having a good credit score mean that you will qualify for better types of mortgages and lower interest rates. Keep these tips in mind so that you can get more bang for your home buying buck!
As always, I am providing this to you for informational purposes only! I am not a mortgage lender and you should contact the lender of your choice directly to learn more about its mortgage products and your eligibility for such products.