5 Tips to Improve Your CreditPosted on Jul 19, 2019
A good credit score can open up so many possibilities when you’re searching for a home -- but if you don’t have that number dialed in beforehand, the home buying process can be grueling. Search organically, and you’ll find droves of information, a lot of which isn’t totally necessary on how to repair your score. With that in mind, we’ve compiled a list of the top five ways to repair your credit & increase your purchasing power.
1. Make Payments On Time
This is a simple way that you can consistently contribute to the overall health of your credit score. The credit report tells a financial story of you as a debt payer and from a lender’s perspective, an established history of timely payments is a good indication you’ll handle future debts responsibly, too. Here at Team Lassen, our no-obligation, pre-approval lending services are simple and straightforward with no upfront fees or cost.
2. Monitor Credit Utilization Rate
If you don’t already have a credit score monitoring app, download one today to keep track of this info. (Click here for 7 apps to help you stay on top of your credit score.) A good rule of thumb is to keep the credit utilization rate at 30% or less month to month. At Team Lassen, we utilize conventional, FHA and VA lending options that customize your loan to meet your financial needs.
3. Pay Off Debt and Keep Credit Balances Low
It’s no secret that the more you spend, the more you owe. Credit accrues interest, so before you go house shopping and long before you need to move, study your credit report and clean it up as much as you possibly can. As a mortgage broker, we work with wholesale and retail investors to get you the best rate and lowest fees.
4. Timing is Key
When you apply for a new line of credit, a hard inquiry is pulled on your report and temporarily lowers your credit score. If you’re shopping for a mortgage, keep hard inquiries to a minimum by making rate comparisons within a short time period. Our residential lender, and one of Team Lassen’s co-owners, Tim Moore, gets the most satisfaction out of working with each client to help them obtain the best financing solutions for their specific needs.
5. Be Patient
A low credit score means that you will be charged a much higher interest rate, and be required to put down a significantly larger amount on a home. Address the items needed to improve your FICO score and increase your purchasing power. Most importantly, remember that the race to improve your score is a marathon, not a sprint. An increased score doesn't happen overnight.
Are you ready to buy? Our in-house loan processing and preferred status with investors will expedite the closing process and get you into your dream home, FAST. Call today and let us go to work for you! 303-410-0400