When you’re in the process of applying for a mortgage, you must work with your lender and find ways to enhance your credit to achieve the ideal mortgage loan. Our team of Mortgages Diversified at Summit Mortgage Corporation has decades of experience in the industry. In this new post, our diversified lenders will help you improve your chances of getting the optimal mortgage by highlighting steps for improving your credit.
Establish a payment plan for loans
Make sure that you have a clear payment plan for your current credit obligations. This means resolving credit card debt and establishing credit limits that allow you to safeguard your savings for the coming months. Take a look at how you are paying your current credit cards and determine areas in which you can make significant savings. The card with the highest interest rate should be your priority when establishing a payment plan. The less debt you have going into the mortgage lending process, the better.
Maintaining credit through the lending process
Once you have been approved for a loan, or have a refinance in process, it is important to not use your credit cards or credit accounts. You don’t need to close your cards, just do not use them until your loan is closed. You don’t want an increase in credit usage when working with a lender. Applying for new credit can negatively affect your credit, which you want to avoid during this process. Wait until your loan is closed and funded before using credit to buy furnishings or make upgrades to your home.
Review your credit reports
In establishing your options as a borrower, the diversified lenders will review your credit report to determine if you have any late payments or outstanding debts. If you have any debts that have gone to a collection service, this will show up on your credit report. Make sure that these debts are paid before visiting a lender to look for a loan. If you review your credit report and find inaccurate information within the report, you can dispute it with the three main credit bureaus and eliminate the inaccuracy from the system.
Working with a trusted and experienced diversified mortgage lender in the application stage can help you find a property that meets your family’s needs. To learn more about the steps you can take today to begin improving your credit, call us directly.