Mortgage Credits
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Understanding Credit & Your Mortgage
Your credit profile is one of the most important factors in determining your mortgage eligibility, interest rate, and loan terms. Here’s what you should know—and steps you can take to strengthen your credit:
What Lenders Look At
- Credit Score & History – Track record of making payments on time.
- Credit Utilization – The percentage of available credit you’re using.
- Payment History – Late or missed payments, derogatory marks.
- Length of Credit History – How long you’ve had credit accounts.
- Types of Credit – Mix of credit cards, installment loans, etc.
- Recent Inquiries & New Accounts – Too many new applications may raise red flags.
How Credit Affects Your Mortgage
- Better credit → Access to lower interest rates and more favorable terms
- Poor credit → Higher rates, higher down payment requirements, or being denied
Steps to Improve Your Credit
- Pay all bills on time—on or before due date
- Lower your credit card balances
- Avoid opening many new credit accounts in a short time
- Keep old accounts open (if they are in good standing)
- Dispute errors on your credit report
- Reduce your debt-to-income ratio
Credit Reports & Monitoring
You’re entitled to periodically access your credit reports from major bureaus (Equifax, Experian, TransUnion, or the relevant ones in your country). Review them for errors or old negative marks that could be removed.
When Your Credit Isn’t Perfect
Even with imperfect credit, there are loan options designed for borrowers with less-than-ideal scores. We can help you explore those options and guide you toward better credit steps over time.
If you’d like a personalized credit consultation or credit improvement plan, contact us—our team is here to help you build toward your homeownership goals.