Owning a home has always been a part of the American dream. But for many families, the thought of buying a home seems unattainable due to having a poor credit history. While it’s true that your credit score plays an important role in determining your eligibility to secure a mortgage loan, your less-than-perfect credit score doesn’t need to hold you back from the dream of owning a home.
There are many simple ways to boost your credit score and improve your chances of qualifying for a low-interest rate mortgage loan. Here are some of our top tips to help you clean up your credit score and start pursuing the dream of homeownership.
Know your score
Before you can begin improving your credit score, you’ll need to get a copy of your credit reports from the three major credit bureaus. You can access a free copy of all three of your credit reports once a year. Because your credit score is based on the data in your credit reports, it’s important to check that all information in your report is accurate. If an error is made on one of your credit reports, it will be reflected in your score. Go through your reports to identify inconsistencies and dispute any errors with each of the credit bureaus – you may see a bump in your credit once the information is corrected.
If your credit information is accurate, but your score is still lower than you want it to be, it’s time to make a plan to improve your credit score. Keep reading for more ways to boost your credit.
Make payments on time
Late payments on loans or credit cards can negatively impact your credit score. Get back on the right track by setting up automatic payments from your bank to your loans or credit card bill, and schedule reminders on your phone or calendar to ensure you never miss a payment. Your credit score will benefit when you consistently make payments on time.
Establish good credit
The longer your positive credit history, the better your credit score may be. Having an established credit history of at least five years will show mortgage lenders that you have healthy credit habits and can make payments on time. Many people begin building credit by acquiring a credit card and making smaller purchases that they can pay off each month.
When you’re ready to look for a home, partner with a mortgage expert who has experience working with people with credit challenges. The experienced loan officers at River City Mortgage focus on clients – not the lenders – to find the best possible loan option that saves you money and time.
At River City Mortgage, we’re here to help you throughout every step of the mortgage process. We make it easier to find the best mortgage for your unique situation, including loans for those with less-than-perfect credit scores. We partner with lenders nationwide to ensure your loan process is smooth, easy and closes on time. Contact us today to learn more or get started online to receive a quick, free quote!