Several factors go into a mortgage loan application and FICO scores make up a piece of that process. A subpar credit score may not necessarily hinder a borrower from buying a home but there are several things a borrower can do to achieve a desirable credit score. If a new home is in your future, here a few things you can do to give your credit score a boost:
Start by pulling a free credit report. Thoroughly review every item on the report and dispute or question any items that don’t look correct.
Target your smallest debts first. By paying down these smaller balances, your credit score will begin to improve.
Make sure your payments are done on time. The credit bureaus also report on on-time and late payments and this information can also negatively impact your score. Stay current.
Can you make extra payments? Sometimes paying an additional amount can speed up the process while lowering interest rates.
DO NOT CLOSE ANY LINES OF CREDIT. Instead, work with what you currently have. Banks want to see your behavior with your open lines of credit.
Try not to use your credit. If we are trying to reduce your credit debt to free up more of your income and improve your credit scores then not utilizing your credit is the way to go.
NOVA also has in house credit services in the event that you require additional assistance or guidance with your credit score.
All of these tips will help improve your score, free up some income to grow your savings and lower your total debt. What’s important is to have a plan by speaking with a mortgage loan officer from NOVA ® Home Loans.
We will guide you every step of the mortgage lending process.
Ready to get started? Call us, today!
The information contained here is educational only. Other conditions and restrictions may apply. Rates and available programs are subject to change without notice. Contact your loan officer for more information