Applying for a Mortgage? Here’s How to Improve Your Credit Score

A couple applying for a mortgageIt is essential to prepare your credit report before applying for a mortgage. To increase the chances of getting an approval, you will need to clean your report and enhance your credit score. If you already have a good credit report, you need to maintain it at that level. Below are important tips that will help to improve your credit score.

Scrutinize your credit report

After applying for a mortgage in Utah, your prospective lender will examine three vital things, which include a down payment, a steady income, and your credit history. Altius Mortgage Group notes reviewing your credit report is important, as it will let you see whether anything is hurting your score. You need to check all records.

Dispute inaccurate information

Misinformation can adversely affect your credit score and might get your application rejected. To get the inaccurate information removed from your credit report, you need to dispute it with the credit bureau. If you have evidence of the alleged mistake, it is essential to produce it to facilitate prompt removal of the false information from your report.

Ensure timely payments

Before applying for a mortgage, it is recommended that you exhibit a pattern of timely payments. This will not only have your application approved, but it will also get you a favorable interest rate. If you have just repaid some delinquencies or have a recent late payment, you need to wait for a minimum of six months to apply for a mortgage. Your credit will look better if you do not have any recent delinquencies on your credit report.

Your credit score is an important consideration when preparing for a mortgage application. Cleaning up your credit records and increasing your score will improve your chances of getting your application approved. Boosting your score will also help you to lock in a reduced interest rate.