Getting your credit in good shape for your mortgage application means doing what’s necessary to improve your score, fixing any errors–and then leaving it alone. Too many changes to your credit in the year before applying for a mortgage can raise a red flag with lenders. It’s a good idea to review your credit report and check your FICO Score 6-12 months before applying for a big loan, so you have time to take action if need be.
Sindeo has your do’s and don’ts when it comes to applying for a mortgage. Check out their infographic on 5 Simple Ways to Improve Your Credit Score here.
What to Do if Your Credit Score is Still Too Low
If you’ve been working on your credit and your score is still below your goals, here are a few things to keep in mind:
- Be patient. Unfortunately, there is no quick fix for bad credit. Focus on maintaining good habits and recheck your score in six months.
- Get credit counseling. If you still aren’t happy with the results or need help improving a particularly low score, you may want to work with a government-approved credit counseling agency.
- Offset a lower score. While many mortgage lenders won’t budge on their credit score requirements, some can be swayed by other aspects of your application. If you can put down a larger down payment, demonstrate a higher income, or improve in other areas, this could help you qualify for a better rate.
This blog post is an excerpt from “Credit Counts: How Better Credit can Help you Score a Better Mortgage.” Click here to learn how credit influences your mortgage rate.
Climb Real Estate provides this information to the public and our clients and does not guarantee its accuracy. Climb Real Estate does not necessarily represent the seller nor the marketing company in any way. For buyer representation, contact Climb or learn how to buy new developments.