Do you have bad credit? Don’t stress! There are credit improvement steps you can take to improve your score to help you qualify for your dream home.
You’ve probably heard the terms good and bad credit, it’s nearly everywhere you look these days. In our financial system, having a good credit score is crucial in order to do many things including purchase a home. Your ability to qualify for a mortgage loan and your mortgage interest rate are determined, in part, by your credit.
Credit scores are determined by a variety of factors including your payment history, amount owed, length of your personal credit history, the types of credit that have been extended to you in the past, and new lines of credit. Credit scores range on a scale of 300-850. Scores above 700 are considered good credit and anything above 800 is considered excellent.
Not all of us have good credit, but the good news is -it is FIXABLE. Use these five credit improvement steps in order to qualify for a mortgage loan to purchase your dream home:
Know Your Credit – Many people don’t even know what their credit score is. The first step to fixing your credit score, is to understand it and know how you got to where you’re at.
On-Time Bill Payment – It seems simple but it’s true. One thing your credit score takes into consideration is how likely you are to make your payments on time. By paying them promptly, your score will improve, thus making it more likely to qualify for a mortgage loan.
Stop Applying – Every time you apply for a new line of credit – be it department store cards, new credit cars, or car loans – your credit card will take a small hit, even if you get approved. Next time you’re shopping, skip the 10% discount for applying, it will be worth it in the end.
Stay within Your Limits – While it’s tempting to put that fancy purse or cool device on your credit card, make sure you’re living within your limits so you can safely pay off your debts every month. Create a budget and stick to it!
Ask for Help! – Our team of mortgage loan experts can help you navigate the complexities of improving credit scores. Our Credit Improvement Process will help you analyze your credit and create a plan to improve your credit in order to successfully apply for a mortgage loan.
The LaForest Team in Greeley, Colorado is here to help you take the necessary credit improvement steps in order to qualify for a home loan. Contact us today to learn more about how we can help you utilize these steps to improve your credit score!