*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Credit scores are crucially important to getting the home you want, the loan product you want, and the best interest rates available. Below is five easy steps to help strengthen your credit score, so that you can enter the loan process as strong as possible.
First, be sure to pay your bills on time and in full. This should already be taking place, but if not, now is a great time to begin. Make calendar reminders, use sticky notes, put an alert in your phone, make sure that you don't forget which day those bills need to be paid. When you get paid, it might also be a good idea to set the money aside so that you're not using money on miscellaneous things that should be going towards paying your debts.
Keep your current credit cards open and ready for use. It's important to have credit history and to have multiple different lines of credit open when looking for a home. One of the easiest lines of credit to have open is a credit card. Keep them open, even if they're not actively being used.
Resolve delinquent accounts and dispute errors that may have occurred on your credit report. Pay off those overdue debts or collection accounts. As you get squared away with the bank, over time they'll raise your credit score. Sometimes, errors can be made on a credit report. It's important to dispute those as well and get those issues taken care of.
Lastly, avoid applying for new credit as you're going through the loan process. Loan officers are careful to watch your debt to income ratios, and taking out new credit while trying to purchase a new home can ruin your chances of completing that transaction. This is extremely important, and a major tip that is crucial to follow when going about the home buying process. No new cars, RV's, investment properties, boats, etc. are worth losing a new roof over your head.
Contact me for more information today on the importance of credit and beginning the loan process.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Brayden Ramsay NMLS #1997195
Momentum Loans NMLS # 1606597
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