Monday, January 30, 2017

Improve your credit for mortgage approval

Posted by Tim
Improving and repairing your credit score is essential for two major reasons: 1) being approved for a mortgage loan and 2) obtaining a good, low interest rate on that mortgage loan. If you have poor credit, there is a good chance that you will not be able to gain approval for any mortgage. This makes sense since the bank, in granting you a mortgage loan, is sending a large amount of money your way. Without some indication that you have a somewhat solid credit history of paying off loans and/or credit cards, the bank would be taking a dangerous risk in giving you the money. As to the second point regarding interest rates, a bank will charge higher interest rate to people with lower credit scores since, by the objective measure of the credit score, that person runs a higher risk of defaulting (not paying) the mortgage. Our next post will offer simple and practical tips on improving your all-important credit score.

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