Bad Credit Mortgage Must Do’s!
See what FICO says about improving your score!
If you have bad credit and are looking for bad credit mortgage products that are available there are a few things that you should be doing while looking. Without doing these must do items, you will surely fail in your goals of being approved to purchase or refinance a home.
Credit maintenance is essential to your ability to qualify for a loan. Just like brushing your teeth to keep your teeth strong and healthy there are some things you must do to keep your credit strong and healthy. The first and foremost thing to do often is to keep track of your credit. We are not saying to pull a credit report every month, but do it at least once a year. Just like a doctor’s check up to see if anything is wrong, a credit checkup can save you many horrible headaches. One growing headache is identity theft and fraud. Checking your credit report is the easiest way to know if someone has stolen your identity. Checking your credit will also help you see what accounts are being shown and accounted for on the credit report. Remember that every mortgage loan lender out there only cares about the accounts on the credit report. They don’t care about your utility bill or cable bill because those accounts don’t show on your credit.
The second thing to ensure your credit’s health is by nourishing it. How do you nourish a credit score? When planting a seed you need some essential things for it to grow. Credit is exactly the same way as far as how it grows. Credit scores raise naturally every 6 months if proper care and nourishment has been given. To nourish your credit score make sure you are making payments on time, not opening new credit accounts, paying down high credit balances, and DO NOT close any open credit accounts. Too often people pay things off and close accounts. What you are essentially doing is plucking a beautiful flower from it’s stem. Keep the account on the credit report for the world to see that you paid of a debt. This will keep your score high whereas closing the account can lower your score 30-60 points!
By doing these few simple techniques you will be able to have peace of mind that your credit will strenghten and give you your buying power back to purchase or refinance your home.
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