Your Credit Report plays a key factor in buying a home. It is important that you order you credit report and review it carefully. There are often mistakes on credit reports, and you are the one who is most likely to find these errors.
I have attached a link to a worksheet that will help you review your credit report. Keep your completed checklist with your credit report and always keep your hard copies in a secure place. If you are not going to save your report, shred it!
Here is the link: Credit Report
Credit Scores range from 300 to 850. A credit score of 760 or more is considered an excellent credit score.
Although you may be able to get a home loan with a credit score of less that 760, to get the best interest rate on your loan, you will need a credit score of 760 or more.
Here are 5 Quick Ways to Boost Your Credit Score
1. Get a copy of your credit report and dispute any errors you find.
2. Negotiate with a creditor that is reporting negative information about you. Write a letter and find out what you can do to erase that negative information.
3. Don’t max out your credit cards. If you have, start paying those balances down. You should not have used more than 30% of your available credit at anytime and using only 10% is best. This applies even if you are paying the balance of monthly. 30% of your credit score rating is based on debt owed. Continue reading →