Tips to Clean Up Your Credit So You Can Buy a Home

Tips to Clean Up Your Credit So You Can Buy a Home

When it comes to purchasing a home, you need great credit. Having a great credit score is the key to qualifying for the home of your dreams. Point Mortgage is a mortgage company in Miami that helps home buyers qualify for home loans. Below, we'll offer some great tips to help you clean up your credit so you can buy a home. Contact us today!

person with their finger on credit score

Know & Monitor Your Credit Score

You'd be surprised to learn that some people do not know what their credit score is. You can receive free credit reports from all three major credit bureaus — TransUnion, Experian, and Equifax. Request these before looking to buy a home and then monitor them as you go through the home buying and financing process.

person typing on computer

Dispute Any Inaccuracies

Many people have mistakes on their credit report that can negatively impact their score. If you see a mistake, you need to correct it as soon as possible. This is best done by writing a letter to all three credit bureaus and then following up to ensure it was fixed.

credit cards

Don't Apply for New Credit

Having credit is a Catch-22; you need credit in order to purchase a home, but having too much credit can negatively affect your credit score. Thus, don't apply for new credit while you are shopping for a home. Both too many credit inquiries and new lines of credit can affect your ability to get financed for a mortgage.

paper with credit report

Keep Moving Your Credit Score Higher

While the credit bureaus do not reveal their exact mathematical formula for arriving at credit scores, there are known factors that contribute to it, such as paying bills on time and keeping a low balance on your credits cards. Continue to keep your credit squeaky clean, and it will steadily climb higher.

PARTNER WITH POINT MORTGAGE TODAY

Point Mortgage has more than a decade of helping potential homebuyers in the Miami area obtain the home of their dreams with exceptional home loan mortgages. If you are interested in a home loan, get in touch today!