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Here's a way to avoid real estate loan surprises and nightmares during the loan process. Pull your own personal credit reports 45 days before applying for a real estate loan. There are always a a lot of things that can be misreported in your report that translate to an increased interest rate on your own mortgage loan and perchance a denial of your loan.

Delinquent payments are one of the main thing that affect your scores. An inaccurate maximum credit limit versus high credit is an issue I see frequently. If a maximum credit limit of $11, 000 shows on a credit card along with your balance $3000 than you still owe less than 50% of the Credit Report imit. Ideally each card should have significantly less than 50% owed on each credit line. However when the maximum limit matches the high credit (the highest balance you've ever endured on that card at one time) that is not good. It seems like you are maxed out on that card.

To increase your score, it would be wise, before applying for a mortgage, to spread your balances to reflect no card is showing greater than 50% of it's available credit limit. Some cards have lower interest rates than the others but we have been talking about increasing your over all credit score here maybe not having the lowest credit card rate. Again sometimes creditors aren't precisely reporting your maximum credit limit which unintentionally can impact your credit score.

By checking your credit reports 45 days before trying to get a mortgage, you can look into these kind of dilemmas and fix them ahead of the lender pulling their credit report. You are able to avoid surprises and inaccuracies because after the lender pulls their credit report, that's more or less it. If there is a credit issue that's fixable and it is something that can boost your score, your lender can do counsel you to do a "rapid rescore" procedure that can possibly increase your Creditonce the credit report issue has been corrected but along with that comes a cost countless dollars to remedy the problem.

It's less expensive to pull your personal credit report by way of a company such as for example annual Credit Score annually, it's free. You will not obtain your scores with the free version, that costs money, but just ensuring sure the info on your own report is being correctly reported is essential and it'll save you headaches, time and money in the form of a lower home loan rate in the long run.

Kevin Walton has been originating California real estate loans for over 19 years. I focus on educating my clients to make the most readily useful property loan decision possible.