Follow these tips to help strengthen your home loan application!
1. BUILD Better Credit!
For the time being, don’t apply for new credit as you’ll risk lowering your credit score. Focus on maintaining a positive credit history with the credit you’ve already established. Be aware that today, a score of 720 or more may be required to qualify for the most attractive interest rates! We’ve helped many of our clients get premium rates simply by helping them raise their credit score well before the application process. We can do the same for you!
2. PROTECT Your Credit!
If you disagree with anything that appears on your credit report, we’ll help you get those errors corrected, ASAP! Getting dings off your credit report will boost your chances of getting approved! Our best advice: don’t let anything delay your loan approval or ruin your good credit in the first place! Protect yourself from identity theft, internet thieves and electronic scams by being cautious about giving anyone access to your personal information.
3. AVOID Payment “Problems”
Don’t skip or delay any of your monthly payments! Late payments, collection accounts and charged-off accounts stay on your credit report for seven years before dropping off. Those delinquencies stay on your reports even if they have a zero balance. Lenders will take a serious look at your payment history to determine your creditworthiness.
4. IMPROVE Your “Debt-to-Income” Ratio
A high income doesn’t ensure your loan approval. Lenders are actually more interested in the retio between your income and your debts. We can advise you on ways to improve your debt-to-income ratio!
5. DON’T Generate Any Major “New” Financial Activity
Lenders may check your credit report when you first apply, and again just before your loan closes. So, you don’t want to show any out-of-the-ordinary financial activity like large money transfers or cash deposits, unless you can prove their origin. Now is not the time to buy a car or furniture, start remodeling or even pay down large credit balances!