Today’s mortgage solutions cover a wide range of credit requirements and lending needs. If working towards a financial goal, here are some helpful yet lesser-known facts about credit scores that can add value.
In addition to qualifying for a mortgage’s credit terms, a desirable score can help with:
- Allowance for a lower down and/or monthly payment
- Qualifying for a lower interest rate
It is possible to improve a score by:
- Identifying possible errors – reconcile collections, unauthorized inquiries or accounts that may not belong on your record by contacting the credit bureau
- Negotiating – request an agreement in writing from a creditor to have an unpaid balance removed if you will immediately pay off the balance
- Asking for a ‘good-will adjustment’ – this can happen if you maintained a good history up until one specific point in time
If sharing finances or borrowing responsibilities:
- Joint accounts (banks or credit cards) affect each individual’s score equally
- Adding a co-borrower is generally most beneficial if it lowers debt-to-income ratio (rather than if the second score is higher or lower)
Please reach out for more credit building information. It’s always a pleasure to help.
Don Parsons, Sales Manager, Bank of Canton