IMPROVING YOUR CREDIT SCORE DURING THE HOME BUYING PROCESS
(Information based on PennyMac Loan Services, LLC)
Do you know your 3-digit credit score? Having the highest credit score possible can save you thousands of dollars because lenders will use your score to determine whether you are eligible for a loan as well as what kind of interest rate they can offer. If your credit score is low, then your interest rate will be higher, which means you will pay more over the course of your loan. A higher credit score will result in lower interest rates, which will end up in less being paid in interest over the course of your loan. FICO credit scores range from 350 to 850, with the average United States score being 723. To qualify for the best mortgage interest rates, your credit score should be at 720-760 or higher.
Here are 6 tips on how you can positively impact your credit report & get approved:
- Fix Any Credit Report Errors
- Pay Down Credit Card Balances
- Bring Past-Due Accounts Current
- Use Your Credit Cards Less Frequently
- Increase Your Credit Limits
- Apply for a New Credit Card
How to Maintain Your New Improved Score During Closing:
- Keep Paying on Time
- Stay in The Job You Have
- Avoid Co-Signing Any Loans
- Do NOT Close Any Current Credit Cards
- Stick with a Single Bank