Credit reports and your mortgage approval
Credit reports can be the single most influential factor when it comes to obtain approval on your mortgage.
13:10 16 December 2013
Your credit report might be the single most important thing in determining if you qualify for a mortgage. It is important that you make sure your report is going to show you in the best light.
Here are a few tips to make sure that you have the best chance of getting mortgage approval.
- Make sure all your bills are paid on time and in the appropriate amounts. Credit reports record a great deal of information. Make sure that you pay all your bills in good time and that you pay at least the minimum amount due each month. This will prevent past due reporting and late fees.
- Space your applications. It looks bad if you apply for a large amount of credit all at once. Spacing out your applications every 3-6 months looks better especially to mortgage lenders. It also prevents you from dealing with a huge amount of denials. Checks on your report and denials can be damaging to your chances as too many look erratic.
- Double check your credit report on a regular basis. You want to make sure that everything is accurately listed. Something like an incorrect address can be damaging to your chances because it creates a discrepancy, if there are errors get in touch with the reporting agency as well as the creditor to make sure the necessary changes are made.
Getting a mortgage can be difficult. Most lenders do not want to hand out money in these difficult economic times. They have made it increasingly difficult for anyone without perfect credit to get hold of a mortgage. The largest indicator of your suitability is your credit report; therefore make sure that everything is accurate and you are doing what you can to make sure that your report shows you in the best light.