Credit Repair Blog

If you are a first time home buyer getting ready to apply for a home loan then making sure your credit score is adequate should be a top priority.  In case you do not meet today’s mortgage lending criteria, you will need time to improve your credit scores. In 2011, most consumers realize the importance of maintaining good credit scores to maximize financing opportunities.  The bottom line is that consumers with high credit scores have more opportunities to qualify for the best home loan rates or lowest refinance rates if you are already a homeowner.

Get Lower Rates to Save Money with Higher Credit Scores Paying off debt if you can afford it. Pay your bills on time each month. Banks and mortgage lenders appreciate borrowers who can demonstrate being responsible by making their payments in timely manner consistently for years. Keep a 3-5 trade lines open for multiple years. (credit cards, car loans, etc.) Make sure you check your credit scores from EquiFax, Trans Union and Experian on a regular basis. Get Started with a Free Credit Report!

A spokesman for Loan Depot, a mortgage lender from Irvine, California, confirmed that borrowers with credit scores above 700 have more options for affordable home financing and mortgage refinancing. It is not unusual for borrowers to save thousands of dollars a year by qualifying for a mortgage when their credit scores are highest.  In some cases borrowers will not qualify for a conventional mortgage, because their scores are too low and then opting for an alternative like an FHA mortgage that requires mortgage insurance that may raise the borrower’s monthly housing expenses by several hundred dollars a month. The reality is that FHA has a minimum credit score of 500, so a bad credit loan would like be steered towards government financing like FHA.

Credit Score Articles, Mortgage Tips