How can I get my credit score up to get a mortgage?

People thinking they can qualify for mortgage loan financing, learn after their credit report is pulled their credit score has dropped and they either cannot get the interest rate they were hoping for or they cannot in some cases get a mortgage loan at all.

Action steps to get your credit score up

  • pay down your credit cards to 30% of the total allowable line
  •  dispute the credit card or debt obligation showing up on your credit report, credit score should go up immediately and you want to get your loan closed at least 30 days
  •  do a balance transfer if you have multiple credit cards over 30% of the total allowable credit lines- consolidating into one new credit card can make your credit score go out
  •  make any late payments current, this  probably goes without saying that you do definitely want to make sure that any payments you are making are on  current obligations
  •  ask a creditor to remove erroneous item from a credit report and/or remove an item that accurate if it’s negatively affecting your credit score, this is on a case-by-case basis but in some circumstances the creditor might be willing to make a concession
  • If you have no credit, open up credit cards and/or apply for an auto loan, the idea is to start generating credit showing responsible payment history over time in order to establish you are  credit worthy individual

Things not to worry about

  • don’t worry about your credit score dropping because you’re applying for a mortgage, it will definitely show up as an increase in your credit report but in almost all cases as long as your mortgage shopping only in their mortgage credit report related, you shouldn’t have to worry about your credit score dropping
  •  closing credit cards, this is something you don’t want to do as it shows the credit bureaus your unable to manage your liabilities
  • if your credit score is 640 or  above, and you’re looking at government financing such as USDA, FHA or VA loan programs, don’t worry about the credit score being a little bit lower as the minimum needed is 640
  •  if your credit score is under 700 and you’re getting conventional financing ie  standard 30 year fixed-rate mortgage for example, there becomes costlier risk-based pricing in the terms of the loan change as does the interest rate and the costs to get the loan, simply put each scenario is different so you want to get a mortgage rate quote and know what you’re dealing with upfront

Begin researching your Santa Rosa Mortgage-get prequalified with us online today.

 

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