Credit scores are a large part of the mortgage loan process. They affect the type of loan that a buyer can qualify for as well as the amount and interest rate. If you’re thinking of buying a property in the near future, you may want to take some of these steps to improve your credit score.
First and foremost, remember that it takes time to change your credit score and it will not happen overnight or even in a month or two. The first step that you should take is to order a copy of your credit report once a year and if there is any incorrect information on your credit report make sure that you challenge anything that is not correct or shouldn’t appear on the report. You should note that when there are a number of credit reports ordered your credit score will go down until a certain amount of time passes and there aren’t any more inquiries. Loan related requests are not given the same negative status as multiple credit card requests in a short period of time. Credit bureaus recognize that people do rate shop and that will result in multiple credit report requests most likely in a short period of time.
Second, the cardinal rule of having a higher credit score relates to time. If you don’t pay your bills on time, your score will go down. It’s imperative that you pay on time and don’t have to make late payments. These credit bureaus take that into consideration and your score will suffer if there are late payments.
Third, just because the credit is available doesn’t meant that you should be using it. When you max out lines of credit, your credit score will go down. Part of how your credit score is determined is based on the balance on your open accounts. Less ends up meaning more.
You can increase your credit score up to 50 points per year but you’ll have to be aware of your revolving credit, amount of credit that you’re using, and the timeliness of your payments.
In the end, it will be well worth it when you have your new wonderful SW Florida home.
naples florida homes for sale, naples fl real estate, naples florida real estate for sale
