Rebuilding Credit for Home Loans
Whether you’ve been turned down for a mortgage loan because of bad credit or you’re working to improve your credit to refinance to a better rate, help is here. Rebuilding credit for home loans is a popular topic among would-be and existing homebuyers and a practice that can help clients strengthen their financial wellbeing overall. In this week’s blog, we’ll discuss ways you can rebuilding your credit to improve your chances of not only getting approved for a home loan but also getting better terms and rates. If you’re in Tampa or Sarasota, or nearby Florida neighborhoods, the team at Associates Home Loan of Florida, Inc., is happy to give you more personalized advice.
The Right Mortgage at the Right Time
When it comes to bad credit, you’re by no means precluded from buying a residential or investment property. Our mortgage brokers, in fact, specialize in hard-money, sub-prime and other alternative loan solutions for clients who either have bad credit or for other reason would have difficulty qualifying for a traditional mortgage loan. Though these loans are readily available in the right circumstances, they have some downsides, like high or volatile interest rates. Some other clients with nonconventional FHA or VA loans work on rebuilding credit to qualify for conventional loans with better interest rates and savings long term. Still, others are recovering from bankruptcy or foreclosure.
Know Your Score
The first step to improving your worthiness as a borrower is to know and frequently check your credit score. Several websites offer free credit monitoring for your FICO scores. In addition to watching month over month how certain changes improve your score, monitoring your credit helps you identify any possible errors that you should dispute with a credit bureau.
Pay Off Debt
There are some “quick fixes” to improve your score by a few points, like asking for a credit line increase, which improves your debt to credit ratio. However, long-term credit rebuilding requires serious dedication to pay down debt. You should prioritize any loans or debt with high-interest rates, like credit cards. Making payments on time is of utmost importance and a high-impact factor that affects your score. It’s important to talk with, rather than avoid, any creditors, who sometimes will reduce debts to ensure they recover at least part of what you owe.
Many of our clients choose to consolidate debt with a local credit bureau, bank, or other personal loans, which have fixed interest rates and terms. You can set up automatic monthly or bimonthly payments to ensure you never miss a payment.
Ask for Help
If your debt feels insurmountable, you’re not alone. Millions of people in the greater Tampa Bay area, Florida, and across the United States work on rebuilding credit for home loans. Free debt counseling is available through the National Foundation for Credit Counseling (NFCC) and even at local organizations. Our mortgage professionals are well connected in the community and are happy to connect you with help.
You Can Improve Credit for a Home Loan
The first step in improving your credit is making a commitment. If you live in Tampa Bay or Sarasota, contact Associates Home Loan of Florida, Inc. Whether it’s finding a hard money loan, nonconventional loan or helping you create a pathway to rebuilding credit for home loans, we’ve got you covered. Are you ready to get started? Apply Now.