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good credit report is a straightforward passage for you to get a good mortgage loan with the best interest rates. A good credit report also gives you very high chances for your loans to get approved. Although you can get a mortgage even when your credit scores are not good, the process can be a lot easier when your credit scores are excellent. Getting your credit scores to attain a good rating may be a challenging task. This article will discuss a few tips that you could use to improve your credit scores before going for that mortgage.
TIPS ON HOW TO IMPROVE YOUR CREDIT SCORE BEFORE YOU BUY A HOUSE 1. LOOK THROUGH YOUR CREDIT REPORTS Before making any move to engage in buying a house process, make sure you go through the three things that the lender is likely to check on. The first is the steadiness of your income as well as your spouse’s; the next one is the amount of down payment that you can afford, and lastly, your credit history. Ensure the three meet the level of the minimum requirements that your lender needs. If all is good, you can proceed with the plan.
2. DISPUTE ANY ERRORS ON YOUR CREDIT REPORT
It is almost normal to find errors in a credit report. The errors could be from a misinterpretation of your credit data or maybe or even errors from typing. Errors in a credit report could affect your credit scores negatively. Ensure you get a copy of your credit records from your bankers and keenly go through them to ensure the information in them is as it should be. In case of any errors, you are supposed to communicate with your bankers for correction.
3. SETTLE ANY ACTIVE DEBTS
Having any outstanding debts whose payment deadline is near or even overdue may put your credit scores at a high risk of dropping. Before you engage with any lender, ensure you pay off those debts to clear your name from the debt books. Clearing any pending debts highly boosts your credit scores.
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THE POWER IS NOW MAGAZINE | JUNE 2020
