Here's a means of avoiding real estate loan surprises and nightmares through the loan process. Pull your own personal credit reports 45 days before applying for a genuine estate loan. There are a several things which can be misreported on your report that translate to an increased interest rate on your home loan and possibly a denial of your loan.
Delinquent payments are one of several thing that affect your scores. An inaccurate maximum credit limit versus high credit is definitely an issue I see often. If a maximum credit limit of $11, 000 shows on a credit card and your balance $3000 than you still owe significantly less than 50% of the Credit Report imit. Ideally each card must have less than 50% owed on each credit line. However when the maximum limit matches the high credit (the highest balance you've ever had on that card at one time) that isn't good. It appears like you might be maxed from that card.
To increase your score, it would be wise, before applying for a mortgage, to spread your balances to reflect no card is showing higher than 50% of it's available credit limit. Some cards have lower interest rates than the others but we have been discussing increasing your over all credit score here perhaps not getting the lowest credit card rate. Again sometimes creditors are not correctly reporting your maximum credit limit which inadvertently make a difference your credit score.
By checking your credit reports 45 days before applying for a mortgage, it is possible to explore these kinds of issues and fix them prior to the lender pulling their credit report. You can avoid surprises and inaccuracies because once the lender pulls their credit report, that's more or less it. If there's a credit issue that's fixable and it's a thing that can raise your score, your lender may do counsel you to do a "rapid rescore" procedure that may possibly raise your Creditafter the credit report issue has been corrected but along side that comes an expense a huge selection of dollars to treat the situation.
It's less expensive to pull your own personal credit report through a company such as annual Credit Score once a year, it's free. You won't obtain your scores with the free version, that costs money, but just ensuring sure the data on your report has been correctly reported is important and it surely will save you headaches, time and money in the shape of a lower mortgage rate in the long run.
Kevin Walton has been originating California property loans for over 19 years. I concentrate on educating my clients to really make the most readily useful property loan decision possible.