mortgage ready tips

7 Credit Repair Tips for Getting Mortgage Ready

With poor credit, one’s dream of obtaining a manageable mortgage for the house of their dreams can seem like a far cry from reality.

The good news is that repairing your credit might not be as hard as it may seem. Along with time and patience, being aware of the steps that it takes to improve your credit will not only increase your score, but it will also make a home mortgage look more and more attainable.

Here are 7 tips to help improve your credit for getting mortgage ready:

1. Determine where your credit currently is

Before working to improve your credit, you need to be fully aware of where it stands right now. There are many great sites that allow you to check your credit score without any penalties. Knowing exactly where your credit is will allow you to form a personalized way to repair and improve it.

2. Take care of errors

Mistakes can happen. Although they aren’t common, creditors can sometimes include errors that can affect your credit score. Contact them immediately if an inaccuracy is found so it is taken care of and fixed.

3. Pay bills on time from now on

Getting out of the habit of being late on bill payments will always improve your credit no matter what. If you want to repair your bad credit, this is the number one thing to fix and fix fast. Late payments not only hurt your credit, but they also tag fees onto your payments, increasing your monthly dues and greatly affecting your FICO score.

4. Don’t close any accounts in good standing

Having a good credit score starts with having a credit history.  One of the biggest factors in determining your current score is the age of your oldest account.  So even if you don’t use that credit card you opened 10 years ago, it could actually hurt your score if you close it today.

5. Erase current debt

Along with your credit score, debt that you have incurred over the years is also keeping you from being mortgage ready. Planning out a way to deduct this debt from your records will improve your credit and get you one step closer to purchasing a home.  A loan officer can better assist you in your personal needs for a desirable debt to income ratio.

6. Avoid new debt

Once you have eliminated old debt, it is important to remember to keep your finances debt-free. This means avoiding opening new lines of credit such as credit cards or extreme purchases on your current credit. This will help your credit over time and your chances of obtaining a mortgage.

7. Control and maintain

Excellent credit will not happen overnight, but taking into consideration the steps it takes to improve it over time will guarantee improvement and greatly assist anyone looking for a mortgage. Once your credit is repaired, make sure to maintain these practices, one minor slip up can cost a good credit score to fall considerably.

Think you are ready to take on a mortgage? Contact us today for step-by-step assistance and guidance towards your new home.

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