There are a variety of things that you can do to prepare for the mortgage process. A particularly important one is to review your credit reports in advance as those scores affects your mortgage options and interest rate. Below are tips on improving credit before buying real estate in Burlington MA.
Tips On Improving Credit Before Buying Real Estate In Burlington MA
Your credit rating affects if you qualify for specific financing options, so obtain your credit rating in advance. There are 3 different credit bureaus (Equifax, Experian, and Transunion). Your rating may be different with each. If there are any errors, it is important to initiate the process of having them corrected immediately as this may take a few months to accomplish.
Increasing Your Score
If your credit score is low, work on elevating it. There are a few ways to accomplish this. If you do not routinely make charges to your credit cards, then they are not submitting information to the credit agencies and are therefore not improving your score. Make routine purchases with your cards and pay the bills consistently. This will help elevate your credit score. If your ongoing balances are high relative to your allowable limits, work on paying off each card. Keep in mind that it is better to have minimum balances across several cards than to have one card close to its limit.
New and Old Accounts
Avoid creating new debt or eliminating accounts. Do not make any big purchases either. These tend to reduce your credit score.
By assessing your credit score, you will have have the time to correct mistakes. Use the basic practices offered in the above Tips On Improving Credit Before Buying Real Estate In Burlington MA Keep in mind that the above are only a few guidelines. For personalized financial assistance, contact a financial advisor.