Refinance Free Credit

Giving top-notch service to buyers starts with making sure you are on solid footing to obtain a home loan. The following tips will help to bypass these common credit mistakes.

1. Not leaving enough time to fix errors. Consumers should review their credit report at least once a year. Inaccuracies aren’t uncommon, and it takes time to set the record straight. Each of the three major credit reporting agencies – Equifax, Experian and TransUnion – provides one free credit report per year (www.annualcreditreport.com). There’s a charge, typically about $15, to see the actual credit score, but the cost is worth it.

2. Changing spending behavior. A surprisingly good credit score can tempt prospective home buyers to open credit card accounts or take out a loan for a new car. Such actions can damage your credit score during a critical time, making it harder to obtain the loan you want.

3. Seeking a subprime loan. Even those with a marginal credit score can qualify for conventional loans. A homebuyer should apply for the best mortgage loan they can find and to remember that other factors besides their credit score, such as the size of their down payment, come into play when applying for a loan.

4. Confusing “pre-qualified” for “pre-approved.” Prequalification doesn’t require the lender to verify income and means very little in terms of a consumer’s ability to obtain a mortgage. You will want to get pre-approved, a process in which the lender checks employment history, income, and bank funds, and reviews the credit report. A seller will take a pre-approval letter seriously but will not feel the same about the "just pre-qualified" buyer. A current (dated within a month but not more)pre-approval letter creates credibility for the buyer as well.

5. Forgetting about credit after the purchase. You have moved into your new home, happy to never have to worry about credit scores again. Not so fast. If you decide to refinance or move, your credit will once again take center stage. Customers to keep their credit score in mind as they deal with the expenses of being a homeowner.

Source: National Association of REALTORS®

Mortgage refinancing can be a confusing process for many homeowners. Mortgage loans are retail products like the appliances in your kitchen and refinancing is not so much choosinig a lender as picking a loan originator. Here are several tips to help you find a loan originator that won’t ...