How to Get Your Credit Ready for a Mortgage

How to Get Your Credit Ready for a Mortgage

One thing that has a major impact on the type of Tustin home loan you can qualify for depends on your credit score. This is why it is important to have good credit before you begin the application process. So, to help you get started, your local lender, Matthew Campbell with American Financial Network, Inc. has listed useful tips on how to get your credit ready for a mortgage.

Tip #1: Pay Off High-Interest Loans

If you have a significant amount of debt, do not worry because you are not alone. Most Americans face large amounts of debt from their mortgage, car loans, student loans, and more. The best way to help prepare you for a mortgage and increase your credit score is by paying off any high-interest loans you may have. Make schedule payments every pay period and take out a set percentage of your paycheck to help pay off your debt and increase your credit.

Tip #2: Do Not Open More Lines Of Credit

Opening more lines of credit can cause your credit score to drop. Regardless if you have even used the card or not, every time you apply for a credit card, your score will lower, even if only temporarily. However, if your score has dropped while your Tustin mortgage lender is reviewing your finances, this could largely affect which loans you could qualify for. Therefore, try to hold off on opening additional lines of credit until after your loan has been finalized.

Tip #3: Never Miss A Payment

Make sure you never miss a payment on your bills. If you miss a payment your credit score could suffer, so if you have a difficult time remembering when certain payments are due, try setting reminders on your phone or writing a note on your fridge so you are constantly reminded.

Tip #4: Dispute Any Inaccuracies

Review your credit score every month to make sure no mistakes have been made on your account. Checking your score before you begin your application for a Tustin home loan will give you extra time to dispute any inaccuracies before your first meeting with a mortgage professional.

Contact Us

If you have any questions on how to get your credit score ready for a mortgage or if you would like to get started on your application today, please contact Matthew Campbell with American Financial Network, Inc. at 714-241-2326.

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