The idea that a low credit score prevents you from owning a home is an outdated concept. There are plenty of lenders willing to work with you, but it may cost you higher interest rates. Premium Mortgage Corp is the trusted mortgage broker for new homeowners in Rochester, NY, and the surrounding areas such as Buffalo, Syracuse, and Barre, NY. They have shared their tips for getting a good mortgage loan when you have a low credit score.
Follow these steps before applying for a mortgage loan to improve your credit score and save you thousands in loan payments:
- Check Your Report: You are entitled to an annual free report from each of the nationwide credit reporting companies – Equifax, Experian, and TransUnion. Take advantage of these by requesting a report from one of them every four months. Look through your report closely to see if there are any mistakes. Mistakes are common and reporting them to the credit bureau to be fixed can do wonders for your score.
- Improve the Score: There are several ways to improve your credit score, as long as you have time. Start these steps as soon as possible, as it may take months or years to get where you want to be. Catch up on any overdue credit balances, and avoid using any available credit by paying off debts immediately. This requires changing your spending habits, which won’t be easy, but making a habit of keeping your debt low is the best way to improve your score.
- Save for a Down Payment: If you can pay more than 20 percent in a down payment for your loan, you are more likely to be approved and enjoy a lower interest rate. You can plan to put aside a certain amount per month for your down payment. It helps to create a separate savings account, so you are less likely to use that money elsewhere.
Talking with a loan officer years before you want to buy a home can be a great way to see where you stand financially and make a plan for the future. Whether you’re looking for a new mortgage loan or mortgage refinancing, the experts at Premium Mortgage Corp can help. Try out their online mortgage calculator or call them at (844) 793-0177 to take control of your financial future.
Corporate Contact information:
2541 Monroe Avenue,
Rochester, NY 14618
NMLS #3254 Equal Housing Lender
Licensed Mortgage Banker NYSDFS