Your credit score is a vital consideration when looking for mortgage pre-approval. The higher your FICO number, the better chance you have at getting approved and purchasing that dream home!
A low Credit Score does not mean you won’t be able to get a loan, but it makes funding more difficult. Here’s why:
Once you’ve made the decision to buy your future home and have thought about what type of mortgage is right for yourself or family member there are many steps that should happen in order before going through an approval process at all lenders like banks etc… One thing we recommend doing prior though which isn’t always enough these days- checking our credit score! (You can get a free credit analysis at Masters Credit Consultants.
Pay everything on-time
Starting the house-hunting process is an exciting time, but don’t get so excited that you forget to make your scheduled payments. Late payments can quickly drag down credit and hurt future opportunities for loans or other financial services like car insurance premiums as well. As you prepare to apply in order find a mortgage on one of these homes with all their bells and whistles installed inside it’s most definitely not okay being late any more – especially if there are kids involved who depend upon paying those bills every month!
Ditch as much of your debt as possible
Pay down or eliminate your outstanding debt. Capitalize on a lender’s bias towards people with low credit utilization ratios and pay off what you owe before applying for new loans!
Do NOT open any new lines of credit
Avoid opening new credit cards six months prior to applying for a mortgage. It will temporarily lower your score and lenders may see how much of it you can potentially borrow, leading them to think that there is higher risk associated with lending money in this instance- especially if they also notice an abundance or hefty purchases being made before then!
Keep your old credit cards open
It is important to keep old credit lines open if you have any cards with good standing. For example, close dormant accounts and your score will suffer in the long run! Start using them sparingly so as not too affect future borrowing opportunities for both new loans or refinancing existing ones at an attractive rate of interest before paying it off completely when ready.
Call in the experts
You’re not alone! You have the power to change your credit score. Don’t let inaccuracies holding you back from achieving that dream lifestyle cost money, peace of mind, or opportunities for success in life—call Masters Credit Consultants today and get on track with building healthy financial habits like timely payments so that one day soon we’ll all be able to look at our reports as if nothing had happened.