Pursuing preapproval: Tips for improving your credit score
Unless you’ve amassed the capital needed to entirely finance a cash purchase of a permanent residence, odds are, if you’re looking to buy a home, you will fund the transaction with help from a trusted lending company.
Such organizations can help you to easily navigate a housing sale and acquire the home of your dreams, but receiving a loan isn’t always as simple as it sounds. Thus, consumers seeking financial assistance are encouraged to obtain preapproval from their chosen lender, as it will show the realtor that you are a serious buyer, and it can improve chances of locking in an affordable payment plan resulting in their purchase offers accepted by sellers.
There are many different approaches you can take to better your chances of being preapproved – the most effective of which may be enhancing your credit score, as a rating 720 and above will generally afford you the opportunity to capitalize on low rates.
Every day at Poli Mortgage Group, our expansive team of Loan Officers work tirelessly to assist clients in determining their purchasing power and finding the home that best suits their financial standing. Since we started lending in 2001, we have originated more than 40,000 mortgages and written over $11 billion in home loans.
Are you hoping to improve your credit score in preparation of requesting preapproval for residential lending? If so, you may benefit by using the following strategies to boost your rating to allow the opportunity to obtain the lowest interest rate possible.
Closely inspect your credit history
When aiming to improve your credit score, the first thing you’ll want to do is get a clear understanding of your current rating and examine possible ways to improve it. Requesting a copy of your credit report from your lender can provide this information. The most effective and thorough credit report available is the one your lender pulls for mortgage qualification. This shows all the history as reported on by the three major credit agencies. The free online credit reports are not as thorough and usually report from only one credit agency.
Work to fix outstanding errors
Sometimes, your credit report may include false data or mistakes, no matter how responsible of a borrower you are. In this case, discrepancies may be corrected by calling your creditor and informing them of the error. You may have to provide supporting evidence in writing though, so remember to hold onto your receipts.
Pay all outstanding balances in full
Another great way to see your credit rating improve is by continuing to make all payments on time and in full. Doing so demonstrates your responsibility as a borrower and illustrates your ability to remunerate large sums of money over a set period of time. Try to pay all bills as soon as you receive them, and keep the outstanding debt to a minimum.
If you’re looking to receive preapproval for residential lending, Poli Mortgage Group is here to help. Call us today at (866) 353-7654.