When you want to get a home loan and you have a bit of a problem with your credit worth then hard money loans can be your best option. However, you must know that the best option to receive lower mortgage rate is to have a good and improved credit score. Better credit scores will give you chances of lower rated and more beneficial loan programs. In this article, we’ve put together some of the tips on how you can improve your score and get the matchless loan opportunities to fund your new home.
- Build a good account
If you have plans of getting a home loan then you need to prepare your records ahead of time. Maintain a good account and you’ll resolved problems in the end. Put in mind that your payment history is like 35% of your total credit score while the amount you still owe is another 30%. With these values, you can already assess that without building a good account, your credit score will surely be not accepted by some lenders.
Pay all your past-due accounts and pay off as many as you can. In this way, you can improve your score and you’ll be entitled to request for good-faith adjustments. When say good-faith adjustments, these are opportunities to request a creditor to remove your late payment report from your credit history. Doing this will totally improve your credit score no two ways about.
- Get yourself available credits
Getting a mortgage is a very big responsibility so when a lender sees that you’re filled with so many other responsibilities such as car loans, electronics, due credit card accounts and other items before applying for a mortgage then you’ll be in a risky situation. Pre-planning the mortgage, refrain from other debts and pay off existing balances instead. The more available credits you have the more chances that you’ll get the best loan programs.
- Make it a habit
Keeping your credit scores good is not just seasonal or you’ll just do it when you need a mortgage. It should be a habit to always pay your bills on time, all the time. Maintain a good debt-to-credit ratio such as keeping your credit card balances below 25% of the total limit. Pay off your credit cards but remember to keep them open and use them occasionally, just make sure that you pay on time. Doing these will surely increase your credit score. And also, by making it as a habit, you don’t need to exert effort in improving it when the time comes that you’ll apply for a loan. No more time needed to improve your score and you can immediately jump into the loan processing.