KippyTichenor588

Here's a means of avoiding real estate loan surprises and nightmares throughout the loan process. Pull your own personal credit reports 45 days before obtaining a real estate loan. There are certainly a many things that can be misreported on your report that translate to an increased interest rate in your home loan and perhaps 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 definitely an issue I see frequently. If your maximum credit limit of $11, 000 shows on a credit card and your balance $3000 than you still owe significantly less than 50% of the Credit Report imit. Ideally each card must have significantly less than 50% owed on each credit line. But when the most limit matches the high credit (the highest balance you've ever had on that card at one time) that is not good. It appears like you're maxed on that card.

To increase your score, it would be wise, before applying for a home loan, to spread your balances to reflect no card is showing higher than 50% of it's available credit limit. Some cards have lower interest rates than others but we're discussing increasing your over all credit score here perhaps not getting the lowest credit card rate. Again sometimes creditors aren't correctly reporting your maximum credit limit which unintentionally can affect your credit score.

By checking your credit reports 45 days before obtaining a home loan, 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 pretty much it. If there is a credit issue that's fixable and it's really a thing that can raise your score, your lender can perform help you to accomplish a "rapid rescore" procedure that may possibly raise your Creditonce the credit report issue has been corrected but along side that comes an expense hundreds of dollars to remedy the situation.

It's less expensive to pull your own credit report through a company such as annual Credit Score once a year, it's free. You may not obtain your scores with the free version, that costs money, but just ensuring sure the data on your own report is being precisely reported is important and it surely will save you headaches, time and money in the proper execution 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 really make the most useful real estate loan decision possible.