Boost Your Credit Score For Better Mortgage Rates

Are you in the process of buying a home or refinancing your current mortgage? Are you getting an FHA loan, or a Conventional loan? What is your credit score? Before a loan officer quotes a rate, these are the questions they will ask.
Credit scores play a big role in today’s mortgage market — larger than at any time in recent history. Blame it on the high default rates of the last half-decade. Lenders are reserving their lowest rates for the customers most likely to make on-time repayments.

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.

3 thoughts on “Boost Your Credit Score For Better Mortgage Rates

  1. Nice blog! The information that you shared are really relevant. You were able to hit the important factors. Investing in rental property generally requires a good credit score thus it is really advisable that we know ways on how to improve our credit score such as by finding ways for a free credit score. Time after time check your credit score to make sure you are on the right track.

  2. Heya! It looks as though we both have a interest for the same thing. Your blog, “Boost Your Credit Score For Better Mortgage Rates Dan the Planner” and mine are very similar. Have you ever thought of authoring a guest write-up for a similar website? It will definitely help gain publicity to your website (my website recieves a lot of visitors). If you’re interested, email me at: Demint@gmail.com. Thank you so much

  3. Pingback: 3 Important Credit Steps Before You Make That Offer | Dan the Planner

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