How to Improve your Mortgage Credit Score in Washington
Improving your mortgage credit score can increase your chances of getting a mortgage loan in WA. It is understandable that debts are part of life but it is important to manage your debts well so that you can maintain a high credit score. Mortgage lenders in WA normally consider your WA credit record and credit score to see how you have previously managed your debts.
“Progress always involves risks. You can’t steal second base and keep your foot on first.” — Frederick Wilcox
It is recommendable that your mortgage credit score be within the national market averages.
What you should do
It is therefore important to review your credit score before applying for a mortgage to see whether there are credit score problems that need to be corrected. You can also seek help from a financial expert to help you correct credit score problems in order to be more marketable to mortgage lenders. Always ensure that information included in your credit card report is accurate and up-to-date before applying for a home mortgage. The following are the basic tips on how to improve your mortgage credit score when buying your first home.
1. Always plan your major purchases before buying a home to ensure that you do not accumulate a lot of debts. By doing so, you will have a high mortgage credit score and enjoy the benefits of home ownership through a mortgage. Mortgage lenders always prefer customers with high mortgage credit score.
2. Always pay your debts in time especially the small ones. It is also recommendable to postpone your major credit purchases up to after mortgage to ensure that your credit rating is high when applying for a mortgage. This way you will be able to enjoy the tax benefits of home ownership mortgages when you borrow money with the intention of buying a home.
3. Always use credit responsibly. When you use money borrowed responsibly it is easy to pay back on time. Mortgage lenders in WA normally consider if your credit use is above the national market averages especially if it is your first time to apply for a home mortgage.
4. Always avoid defaulting on payments even for obvious debts. Delinquent debts, collection of items and court judgments are normally kept in your credit score record for 6 years in WA. You can avoid bad records in your credit file by avoiding defaulting payments. This will improve your mortgage credit score and help you to qualify for tax deductions for homeowners.
5. It is advisable to save money regularly for emergencies. This will enable you to avoid frequent borrowing that could lower your credit score when you fail to pay borrowed money on time. By doing so, you will have a good mortgage credit score and enjoy the advantages of home ownership through a mortgage.