With mortgage rates so low, it’s a great time to get a mortgage loan to buy a new home or refinance your current loan. To get approved for a loan, and to get the most favorable interest rate, you need to look like you are a good credit risk. Generally, this means having a score of 640 or higher. Here are specific steps to take to raise your score.

Bring delinquent accounts current.

If you are behind in other loan and credit card payments, mortgage companies fear you may get behind on your mortgage loan payments, too. Contact each account and find out what you need to pay to bring the account into a current status.

Pay down credit cards.

High credit card balances signals that you are having financial difficulties, and mortgage companies will not want to give you a loan that you cannot pay back. Lenders like to see borrowers use no more than 30% of the credit limit on each one, so pay each account down to that level.

Pay off credit accounts.

Pay off balances when you are able to, and only borrow what you can pay in full each month. This will raise your credit score, and lenders will see you as a responsible credit risk who will pay them back regularly.

For information on mortgage loans for buying or refinancing, call Vernon at Guild Mortgage: 520-406-3452.

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