I’m always looking for ways to help my clients prepare for their new home purchase. Below are some useful tips I recently came across on how to better your credit score so you can get the best home loan possible! Thanks for reading and please share this blog post with anyone you feel might find it useful!
Higher Credit Scores = Lower Interest Rates
Whether you want to buy a house, a condo or a piece of property to build your dream house on, good credit will get you the loan you need at the lowest interest rate possible.
But even if you have a bad credit score from unexpected life situations that couldn’t be helped, there are still lots of things you can do to improve your score
1. Find out your free credit score
You’ll need a score of 660 or higher in order to qualify for most mortgages, but shoot for a credit score of 720 or above to get the best interest rates, which are 1-2 percentage points lower. A few percentage points may not seem significant, but they translate into thousands of dollars difference on your loan.
If you had a $300,000 mortgage for 30 years, the difference in rates could add up to $100,000 in interest. That’s a huge difference that you could save on if you had a better credit score!
2. Check your free credit report card
Pay close attention to your credit card utilization and payment history, which each account for a large portion of your credit score. Your derogatory marks is also worth your time, since an account in collections will really hurt your overall score.
3. Fix it!
If you have a large amount of debt, make an effort to pay it off. Decreasing your credit card utilization by paying down credit charges is a great way to help improve your credit score.
If you have any derogatory marks that you don’t recognize, pull your full, free credit report from Annual Credit Report and investigate. If you find something that’s not yours, get it removed.
4. Wait for it…
Your credit won’t be fixed over night, but by taking a proactive approach to fixing your credit, you can expect to see improvements in six to twelve months. In the meantime, hold off on new credit cards or loans, since the hard inquiries that come with that will ding your credit score.
You can also spend the time researching what kind of mortgage you want. I can help you with this – I can guide you through this process and help you find rates for different mortgages and a mortgage affordability calculator to see how much you can afford.
Taking the steps to improve your credit score can help you will save tens of thousands of dollars with a lower interest rate. Contact me for more details on how you can find and secure the home of your dreams. I’m here to answer all your questions and to help you get on the right track to buying or selling your home!
We invite you to like us on facebook, follow us on twitter and connect with us on linkedin. We hope that you find our website to be a great source of information and visit often. Whether you are looking for Homes for Sale, Moving Resources, or even Mortgage Information everything you need is right here.
We will always be available for personal service by phone or email, so feel free to contact us with questions any time! My offices are located on 2326 Del Prado Blvd. S., Cape Coral, FL 33990. You can reach me at 239-425-2503 or email me at Bob.Ashworth@gmail.com and you can visit my website at www.BobAshworth.com.