Your credit score is another example of a qualifying guideline. Your credit report will be reviewed to see if there are any problems or opportunities to improve your credit score before you begin shopping for a home and applying for a loan.
Here are our top seven simple steps you can take to improve your credit score:
- Get a copy of your credit report. Places like FreeCreditReport.com or CreditKarma.com will provide you with a free copy.
- Review the debts listed along with the payments. Make sure the information is accurate. If it isn’t, go to each company (Equifax, Experian and Transunion) and dispute the findings.
- Make sure that you don’t exceed 50 percent of the borrowing capacity on your revolving debts.
- Check for unpaid medical collections, bills and or judgments.
- Do not apply for multiple ‘specialty” store credit cards, i.e. Sears, Penney’s, Victoria’s Secret. It is better to apply for a Discover or Visa that is accepted everywhere and helps to build better credit.
- Resist the temptation to apply for store cards to get that additional 5 percent off your purchase. Having your credit pulled by many stores can really drop your score.
- Do not close out all your old credit card accounts. This could reduce your score as well. Instead, quit carrying those cards and keep them in a safe place.
Know the Factors that Impact Your Score
These few factors really dictate your credit score:
- On-Time Payments
- Capacity Used
- Available Credit
- Length of Credit History
- Type of Credit Used
- Past Credit Applications/Inquiries
Mid America Mortgage
Do you have any questions pertaining to your credit score or home buying? Mid America Mortgage is happy to answer any questions you may have! Whether you are just starting the process or in the finishing stages, we are here to guide you every step of the way.