Ways to Improve Your Credit Score and Get The Best Mortgage Rates Available!

Last month I participated in a seminar in Greenville, and thought I would share some of the things I learned from the notes I took. Did you know that the better your credit score is the better rate you will get when you apply for a mortgage, car payment or even your home owners insurance? For every 20 points you increase your credit score, you can get a ¼% better rate when you apply for a home mortgage. This equates to about $6.00 per month per $1000 you loan. Another way to get the best rates is putting more money down on the home.

 

Here are some ways to improve your credit score:

 

1. Don’t increase your debt before applying for a mortgage.
2. Don’t make one single late payment! One late payment can hurt your credit score by 40-80 points.
3. Call your credit card company(s) and ask them to raise your credit limit. If you are paying on time, they should do this. The amount of credit that you have available to you increases your score.
4. You can go on Freecreditscore.com. You will be asked to post your credit card. After you print your credit score out, call the 800#, and tell them to take the $29.99 charge off, which they will. Call 45-60 days later and do it again. This raises your credit score.
5. Pay off as many balances owed on credit cards and stop using your credit cards until after you close on your new home.
6. Do not use your credit cards to pay off any debts during the 30-45 days from which your home is under contract until it closes.
7. Have a good mix of credit accounts, credit cards, bank loans, department stores, and finance companies, but open any new accounts more than 6 months ahead of when you will be applying for your mortgage.
8. If you have tarnished credit, obtain secured credit cards. If paid on a timely basis, it will help establish the consumer’s credit and their score.
9. Don’t go to consumer counseling services when applying for a home mortgage. This will alert credit bureaus that you are unable to pay bills and affect your credit score.

 Credit bureaus also like secured debt such as mortgages and car loans better than unsecured debt such as credit cards. If you can't afford your monthly mortgage payment on the home you want to buy, you can talk to me too, about how you can buy down your interest rate to make your mortgage more affordable.

http://www.callnancylamar.com/ for all your real estate needs!