Credit Check
our credit score helps lenders determine the amount of risk they take if they give you a mortgage loan. Scores range from 300 – 850 points based on your payment history and ability to repay your debts on time. Late and missed payments will both lower your credit score.
Higher scores can make creditors more confident that you will repay your loan.
Raising Your Credit Score
Dreaming of that new home? 🏡 Your credit score plays a big role! Check out these 5 pro tips to give your credit a boost before diving into the loan application process:
1. Hold off on new credit applications.
2. Work on reducing that existing debt.
3. Consider a higher credit card limit.
4. Rescore with trusted sources like Equifax.
5. Group your mortgage queries within 45 days.
Remember, a strong credit score can be your ticket to better loan terms!
Pre-qualified & Pre-approved?
Navigating the seas of home loans? 🏠 Let's clarify the difference between pre-qualification and pre-approval! Pre-qualification is like a first glance at what you could borrow for your dream home, based on your finances and a credit check. Pre-approval, though, is the real deal, a strong signal that your creditworthiness is solid, even without a home picked out yet. Both steps are your allies, ensuring you have the right papers in hand when you're ready to sail.
Preserving Your Credit Score
Preserving your credit score is crucial for future financial endeavors. 💳✨
1) Always pay your loans punctually.
2) Keep a safe distance from your credit limit.
3) Only pursue necessary credit applications.
4) Regularly review and fact-check your credit reports.
Remember, a strong credit score is a reflection of your financial discipline and will help you secure your dream home.