Upping Your Credit Score for Finance-Ability
When a consumer is faced with the challenge of paying
bills or stocking more money away in their savings which
is the winner? According to mortgage experts, paying
off more debt to streamline a credit rating while bringing
less money to the closing table is the optimal choice.
The objective of improving a credit score and paying
off more debt with less cash on hand for the closing
can allow for a larger mortgage. Simultaneously, it
enables the borrower to replace a non tax-deductible
and high-interest rate debt with a condensed lower-rate
mortgage debt. In essence, paying off more debt before
acquiring a new home loan will allow the benefit of
The recent trend in the mortgage industry is demonstrating
that more consumers are putting less equity into their
homes. Regardless, if the mortgage loan transaction
is for the purchase of a new home or a refinance transaction,
Americans are borrowing more against their homes and
then paying off other debts.
For the consumer in quest of a mortgage, it is best
to postpone incurring additional financial obligations
or applying for new credit cards, it is best to obtain
mortgage loan approval first. Critically, an excessive
number of credit inquiries in the way of credit cards,
can impair a borrower's credit scoring. Specifically,
inquiries filed prior to the months of a home loan application
process may hurt the mortgage approval.
Another way a consumer can mortgage loan ready the
approval process is by increasing the down payment.
The higher the down payment the better a consumer has
for qualifying for a low interest rate; especially if
they remit monthly debt payments in a timely fashion.
An important note to consider when pining away for a
new home is to place savings into a non-volatile account.
For example, an individual stock is not an ideal place
to save money if you plan on using the money for a new
home purchase. Remember to evaluate money market and
other savings accounts that provide a reasonable rate