Here at Eminence Mortgages, we know that applying for a mortgage can be a complicated and perhaps even daunting process for many people. With the numerous steps involved in the process, coupled with the overload of information on the internet, it can be easy to feel overwhelmed and lost with where to begin. One thing you may be thinking about is how you can improve your credit score. Having a good credit score is a vital factor for the interest rate you will receive when you apply for a mortgage. That is why we are here to offer you some tips on how to improve your credit score so that you can obtain the best mortgage terms and interest rates.
The first and most important piece of advice we can offer you on this topic is to ensure that you make your monthly debt payments on time. Many people are under the impression that you cannot apply for a mortgage if you have debt, but this is incorrect. As long as you pay your bills on time, you can still apply and it will help to raise your score.
The next tip is to check your credit reports and scores. In addition to doing a full review of your scores, you should also ensure there are no mistakes, particularly when it comes to late payments or closed accounts.
The final tip we have to suggest is to avoid opening new accounts. This applies both during the application process and the underwriting process, as it will affect your overall credit score.
On the whole, there are many factors which influence your credit score, and it is important that you do all in your power to improve it when applying for a mortgage.