3 Steps to Improve Your Mortgage Rate (Step 1)
There are many ways to improve the odds of receiving a favorable mortgage rate. We all know that lenders are going to check all three of your credit scores (Equifax, Experian, and TransUnion). It is extremely important to know exactly what your score is on each of these three reports. If you have a score above 650, you will most likely receive a decent mortgage rate, but if your score is higher than 750 your rate will be even lower.
In order to increase your credit score quickly, there are a number of steps you can take to improve your rating. Keep in mind, that you should check your credit scores at least 3-6 months prior to applying for a mortgage to allow enough time for your “fixes” to take.
To help increase your credit score, these steps can start you down the road. First, it is recommended that reduce your card balances below 35% of your total credit limit. Second, keep your accounts stable, make timely payments and avoid unnecessary applications for credit. Lastly, correct any inaccuracies that may be on your reports, you don’t want to be paying for auto parts, expensive dinners and vacations you had nothing to do with.. Be sure to be proactive in regards to your credit, sometimes someone else’s clerical error can be the difference between a good rate and a great one!
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