Your credit score will play a big role in your home purchase — and how much it costs. So before starting the home search, pull your annual credit report from one of the three major credit reporting bureaus, Experian, Equifax or TransUnion. You might also check with your bank or credit card company. Many offer credit monitoring services and can help you check your credit score for free.
If your score isn’t great or could just use a little improvement, consider delaying your home purchase a few months to work on your credit. Even a 20-point boost can mean a significant reduction in interest rate — not to mention lifetime costs — of your mortgage.
Here are some ways you can start improving that credit score:
- Pay down existing debts and credit card balances.
- Avoid applying for any new cards or loans
- Prevent missed payments by automating all your bills
- Don’t close accounts once they’ve been paid off
You should also report any errors you find on your credit report. Sometimes, correcting these issues can increase your score drastically.
The information contained on this website is for informational purposes only and is not an advertisement for products . The views and opinions expressed herein are those of the author and do not reflect the policy or position of Brokerage. Source: The Mortgage Reports