Tuesday, January 27, 2009
by Glenn Elliot
It has become increasingly important for buyers to maintain good credit when applying for a mortgage. The higher your credit score, the lower your interest rate. We have a number of reliable mortgage planners to call on who help us find the best loan for our clients. Then it’s a matter of the buyer doing their part.
First, you need to review your credit report for accuracy. The three main credit reporting agencies, Experion, Equifax, and Transunion will provide a free report each year, just for the asking. It’s a great program. And here’s a tip when ordering your reports: Instead of ordering all three reports at once, consider staggering your requests throughout the year, which will allow you to check your reports more frequently. Any mistakes on your report should be corrected immediately.
Second, make sure you pay your bills on time. This is huge. Up to 35% of our credit score is based on our payment history. Even if you’ve had a rough spot in the past, you can still bring up a low score by simply paying your bills each month. Having a few open accounts will not hurt you as long as you are not abusing them. On the other hand, closing down accounts may look bad if done right before applying for your loan.
We should also note that mortgage companies are looking for ways to help. There are some great programs out there, even if you have less-than-perfect credit. Prospective buyers owe it to themselves to contact us for more details. We’re more than happy to help!
For more information, listen to my January podcast by clicking on the microphone below or by clicking here.
