increasing your credit scores part 2
3 things you can do to improve your credit scores, Mortgage Broker Largo.
When buying a house, a 30 point difference in your credit score can change your rates, determine loan terms and type, and can even influence your ability to win in a multiple offer situation.
Here are three things you can do to help boost your credit score and help you qualify for the best loan.
Student Loans, How They Affect Your Debt-to-income Mortgage Calculation
As a friend of ours always says, "you can pay me now, or pay me later." If you defer your loans you debt continues to grow. As your debt grows, you debt-to-income level also changes.
What does this mean for you and your mortgage qualification? As a broker, we take .5% of your total student loan debt to determine your monthly obligation. If you have $100,000 in loans, we assume you will have a monthly payment of $500.
The good news. If you start to payback your loans and go on an income-based repayment plan, we can use your actual payments. I recently qualified a couple where the wife had a debt of $240,000. Yikes! I told her to start repaying her loans ASAP. She was able to start an income-based plan of about $300/mo, and after three months, I was able to pull her actual payments and qualify them for a $380,000 loan. If you have student loans, and would like us to run your numbers, start an application and we can review everything with you.
Medical Collections, Mortgage Qualification, And Credit Scores
Medical collections can be tricky. You would think, "I payoff the debt, and my credit score goes up." Unfortunately, this is not how it works.
You need to do two things. 1st, pay off the loan. 2nd, you need to ask for a deletion letter. A deletion letter lets the credit burrows know everything is in good standing. This helps improve your credit score and helps you qualify for a mortgage.
30 Day Late, Make A Call And Get It Removed
Most credit card companies will remove late notices or 30 day lates if you simply give them a call. We know, this one sounds too easy, but it is true. With most credit cards all it takes is identifying a mark on your credit report, calling, being polite, and asking them to remove it. As long as the card is in good standing, they should take care of it for you.
If you are thinking of buying a home, it is critical that you have the highest credit score possible to get the lowest interest rate available. The best way to improve your score is to
talk to one of our mortgage specialists. We can look at your credit and let you know how to improve your score.
If you want to buy a home, start your application, and get pre-qualified.
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