How to Improve Your Credit Score
Making the decision to purchase a home is very exciting regardless if this is your first purchase or you are a seasoned buyer. There are many benefits associated with owning your house, such as the major tax deductions, long-term investment, more privacy, and artistic freedom. But before you can begin appreciating these benefits, it is first important to be organized with your finances.
Two factors that largely influence what type of Orlando home loan you will be approved for depends on what your current income and your credit score are. Your credit score can determine whether or not you can qualify for a specific mortgage and it can help you receive a better interest rate.
So, to help you get started, your local Orlando mortgage lender with the Harper Mortgage Team has listed some useful tips on how to improve your credit score.
Tip #1: Never Miss A Payment
Failing to make a payment can largely affect your credit score. Therefore, it is extremely important to always make scheduled payments on time. If you struggle with remembering when a payment is due, you may want to set a reminder on your phone to go off or write the due date in your calendar.
Tip #2: Pay Off High-Interest Loans
The more high-interest loans you have, such as credit cards, the lower your credit score could be. This means that you should try and focus on paying off all your high-interest loans first to help improve your score.
Tip #3: Avoid Applying For Additional Lines Of Credit
Just because you have made the decision to buy a new house does not mean everything you own has to be new. Most homebuyers struggle with this because they get sucked into a buying frenzy. Now what you may not know is that every time you apply for a new line of credit, your score will drop. Sometimes only temporarily, but this could still be enough to affect your application for an Orlando mortgage. So, be sure and talk with your local lender first before making a large purchase.
If you are interested in receiving more information on ways to improve your credit score or if you would like to begin your application for an Orlando home loan, please contact the Harper Mortgage Team at 407-614-3095.