Mortgage rates are at an all-time low in California. However, the low rates you see advertised on TV and online are only available to the home buyers and would-be refinancers whose credit scores are pristine. But beware – some of those low rates don’t exist and are merely used to hook you, but I will leave that story for another blog. Suffice to say, having a high credit score is often the difference between getting “the best rates” from your lender, and getting something worse.
The first part of improving your credit score is understanding how it works. In this 5-minute piece from NBC’s The Today Show, you’ll learn the basics :
- Why you shouldn’t close a credit card after you pay off a large debt
- What is the maximize balance to leave on your credit cards, relative to your credit limit
- What types of credit checks harm your credit scores, and which ones don’t
You’ll also learn how to shop for a mortgage with multiple lenders without having your credit score “dinged”, as well as several proven methods to raise your credit score quickly.
In the end, the act of applying for a mortgage early is a good idea. This will allow us to work through any errors on your credit report, or complete simple changes that can improve your scores and thus your interest rate!
If you would like a free credit analysis or loan pre-qualification don’t hesitate to contact me.