Credit Scores and Home Loans

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

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This entry was posted in Credit Score, Financing, Home Buying, Home Selling, Homeownership, Market Conditions, Mortgage and tagged , , , , , , . Bookmark the permalink.

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