Low Credit Scores & Mortgages

A low credit score can cost you thousands of dollars and even keep you from getting a loan at all. Your credit score lenders use to evaluate your risk of being able to repay your loan.­ And the lower the score the higher your interest rate will be.­ If you are considering buying a home soon you should check your credit score now so you have time to fix any problems.­ Start by pulling a free credit report and get your score.­ If you are above 760 you should be fine.­ If it is lower than 760 start by looking for any errors in your report.­ If you find an error work at getting them corrected or pay off account balances.­ Then do a rapid rescoring which will cost you $100-$300 but will post in a few days.­ Find a lender that is a customer of a rapid rescoring service.

And if you have time before you are going to start the buying process, pay down your balances on credit cards for a few months and don't close any unused older accounts.­ Your utilization ratio, your total debt divided by your total available credit,­ will be better with the unused older account showing as open yet.

Make sure never to pay a bill late and keep your balances low.

June Cook

June Cook

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