Understanding your credit score is one of the most important factors when applying for a mortgage. Your credit has a major impact on the type of loans you can qualify for, meaning if you have a low credit score, you may have a limited selection of mortgages to choose from. Your credit score can also determine what rates you will receive on your Brooklyn mortgage, which is why you should improve your score as much as possible.
So, to help you get started, your local mortgage lender, Yael Ishakis, has listed some useful tips on ways to improve your credit score.
Tip #1: Pay Off High-Interest Loans
Many Americans face large amounts of credit card debt. This is because it is so easy to apply for one and most do so without thinking about the high interest that comes with it. The more credit cards you have, the easier it is to fall into debt. So, if this is you, then try and focus on paying off as much of your high-interest loans, such as a credit card, now before you apply for a mortgage. This can help raise your credit score and improve your overall home loan application.
Tip #2: Avoid Opening New Lines Of Credit
Another useful way to raise your credit score is by avoiding opening new lines of credit. Every time you apply for an additional line of credit, your score will drop. Most of the time this drop only occurs temporarily, but it could still make an impact on your loan application. Therefore, hold off on applying for a new credit card or any other type of loan, until after your mortgage has been approved by your Brooklyn mortgage lender.
Tip #3: Always Make Schedule Payments
If you have a hard time remembering when payments are due, then you should invest in a calendar or put a reminder in your phone that sets off an alert every time you have a payment due. This is very important because if you miss a payment, your credit score will be affected. Therefore, set reminders and write notes so you always make scheduled payments on time.
Contact Us
If you would like to learn more information on how to improve your credit score or if you are ready to begin your loan application, please contact the best mortgage lender in Brooklyn, Yael Ishakis, at 718-732-0309.
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