How to Increase Your Credit Score Before Applying for a Mortgage in Burlington

While you may have saved for a down payment on a brand new house, if you have less than perfect credit, then you may find that you have a difficult time qualifying for a mortgage and purchasing the home you really want. There is good news. There are a number of steps you can take to help and improve your credit score and get approved to purchase the home you really want.

Pay Your Credit Cards Off

If you are swimming in credit card debt, then lenders are likely going to think twice prior to giving you a mortgage. This is due to the amount of credit you have used and your debt-to-income ratio. This is why it is a smart move to go ahead and pay off of your balances prior to sending out any additional mortgage application.

Try to make more than just the minimum payment on the cards you have each month, which will help to boost you credit rating and lower the amount of overall debt you have. This will also show your lenders that you are willing to repay what you have borrowed.

Look at Your Credit Reports

Mistakes happen all the time. When this happens you don’t want to be the last person that finds out about them. Try to get your free credit report online so that you can check what is going on and what is reporting against your credit score. If you find an error, you need to file a dispute right away to have it corrected. While this can take some time, having issues with your credit report fixed right away will help to save you time and money.

Don’t Apply for any New Lines of Credit

If you are moving into a new home, you may be interested in getting a new car, or furniture or something else, but you should not apply for any new lines of credit. This may mess up the possibility of you securing the mortgage that you need to get the home you want. Also, don’t close any accounts either, since this may make your credit history appear minimal, which could also hurt your chances of getting a mortgage.

Taking the time to get the mortgage that you want and need will require you understanding your credit rating. While this can take time and effort, the fact is that it will be well worth it in the end.