A high credit score is essential for getting the best possible financing for any large purchase. If you’re a first-time homebuyer, then your credit will make a significant difference in your ability to get a mortgage with comfortable terms. However, a few financial mistakes can leave you with a less than perfect score. Luckily, there are ways to fix it.

How First-Time Homebuyers Can Repair Bad Credit

Check Your Reports

The first task you should do as you work to get your credit up is to see where you’re starting. There are many free online services you can use to check your credit reports from the three major bureaus, and some credit card companies and banks offer this option to members for free. Look for any errors on your report that drag your score down, like cards opened in your name due to identity theft or administrative issues. Then, contact the bureau in question and request that they remove those items.

Pay Off Debts

The less debt you have, the higher your credit score is going to be. If you have mountains of credit cards, start paying them off as quickly as you reasonably can. Be sure that you leave enough money to pay the rest of your bills, as late payments also harm your credit score.

Open New Accounts

The more open credit you have that you’re not using, the higher your score will be. If you can, open up a new credit account or have a trusted family member add you as an authorized user to their account. Make sure that you don’t use those accounts, and if you do, pay the balance off right away. This process will help you improve the ratio of used to unused credit on your accounts.

If you’re a first-time homebuyer looking to obtain a mortgage, Dan Main in Saint Peters, MO, will help. This mortgage lender has been serving homeowners throughout the community for more than 20 years and is committed to creating lasting relationships with clients. He’s skilled at finding the right home loan options to fit your specific needs and budget, and he offers professional tools aimed at taking the stress out of the home buying process. View a selection of first-time homebuyer resources on his website, or call (636) 284-4144 to make an appointment.

Dan Main: NMLS # 502036
Flat Branch Home Loans: NMLS # 224149
201 Salt Lick Rd
St. Peters, MO
This is for informational purposes only and not an offer to lend or extend credit.