How To Prepare Your Credit for a Home Purchase or Refinance:

Your credit score determines what type of mortgage and interest rate you’ll qualify for, so it’s important to take these steps BEFORE you start shopping. 

  1. Pay all your bills on time. These include your mortgage statements, car payments, credit cards, etc. 
  2. Keep your credit cards lines open. As you build your credit, more opportunities will become available with new cards and benefits. If you open a new credit card with better benefits, keep your old line open. Even if you aren’t using the card, having a long credit history helps keep your credit scores strong.
  3. Get copies of your credit reports and dispute any errors. If there are any discrepancies with your credit, the sooner you catch them, the better. Staying up to date with your usage and reporting is essential. 
  4. Avoid applying for new credit. Unless it is absolutely necessary and you need to buy a new car, home, or open a new credit card, avoid having your credit run by applying for new credit. 
  5. Resolve delinquent accounts. Sometimes, despite doing our best, we can keep up with our financial responsibilities. If you do become delinquent with any of your accounts, reassess your financials and see if there’s any room to re-budget. It would also be beneficial to contact the financial institution(s) that you have delinquent accounts with and see if there is a repayment plan you can enroll in.

Want more helpful advice? Give our team a call and let’s work to get you the best mortgage possible! We are here to assist you in purchasing a new home or refinance an existing mortgage at unbeatable rates. 

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