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Increase Your Credit Score Quickly Before Applying for a Mortgage

by Laviola Team 11/05/2018

It’s hard to overstate the importance of credit scores when it comes to buying a home. Along with your down payment, your credit score is a deciding factor of getting approved and securing a low interest rate.

Credit can be complicated. And, if you want to buy a home in the near future, it can seem daunting to try and increase your score while saving for a down payment.

However, it is possible to significantly increase your score in the months leading up to applying for a loan.

In today’s post, we’re going to talk about some ways to give your credit score a quick boost so that you can secure the best rate on your mortgage.

Should I focus on increasing my score or save for a down payment?

If you’re planning on buying a home, you might be faced with a difficult decision: to pay off old debt or to save a larger down payment.

As a general rule, it’s better to pay off smaller loans and debt before taking out larger loans. If you have multiple loans that you’re paying off that are around the same balance, focus on whichever one has the highest interest rate.

If you have low-interest loans that you can easily afford to continue paying while you save, then it’s often worth saving more for a down payment.

Remember that if you are able to save up 20% of your mortgage, you’ll be able to avoid paying PMI (private mortgage insurance). This will save you quite a bit over the span of your loan.

Starting with no credit

If you’ve avoided loans and credit cards thus far in your life but want to save for a home, you might run into the issue of not having a credit history.

To confront this issue, it’s often a good idea to open a credit card that has good rewards and use it for your everyday expenses like groceries. Then, set up the card to auto-pay the balance in full each month to avoid paying interest.

This method allows you to save money (you’d have to buy groceries and gas anyway) while building credit.

Correct credit report errors

Each of the main credit bureaus will have a slightly different method for calculating your credit score. Their information can also vary.

Each year, you’re entitled to one free report from each of the main bureaus. Take advantage of these free reports. They’re different from free credit checks that you can get from websites like Credit Karma because they’re much more detailed.

Go through the report line by line and make sure there aren’t any accounts you don’t recognize. It is not uncommon for people to find out that a scammer or even a family member has taken out a line of credit in their name.

Avoid opening several new accounts

Our final tip for boosting your credit score is to avoid opening up multiple accounts in the 6 months leading up to your mortgage application.


Opening multiple accounts is a red flag to lenders. It can show that you might be in a time of financial hardship and can temporarily lower your score.

About the Author

Author
Laviola Team

Steve & Sharon Laviola have sold 24 homes in the first half of 2018 with many newarriving daily.... 2017 was a great year too with 31 homes in the area being sold by the Laviola Team. 2016 was supported with 28 home sales. Steve Supervised and staffed model homes for new community in 2015 where 61 homes were sold at high market pricing due to his knowledge of new construction and excellent communication skills. 51 Homes sold in 2014, so you can see that the stats for the Laviola Team speak for themselves....

Steve Laviola was the #5#5#5#5 individual agent with RE/MAX in the entire state of Tennessee in 2015. He received the 2014 Chairman's Club Award; less than one and half percent of RE/MAX agents, nationwide, achieve this prestigious award. He holds the Platinum Club Award, for two consecutive years and was also honored with the Hall of Fame Career Award. Sharon Laviola has proven marketing skills and provides that TLC for an excellent experience in property purchases or when selling a home. She has staging experience and is a member of the Institute for Luxury Home Marketing. Steve and Sharon have over 20 years of experience in Real Estate. 

They are very active in the community and give a portion of all sales to the Children's Miracle Network as well as many other local organizations in their area. Just more reasons for you to let their expertise guide you through the buying and selling process!