mortagesandforeclosures

by William Condiss

When you're buying a home, there's one number that's more important than any other: your credit score. It?s what determines whether you qualify for a mortgage loan with the lowest interest rates possible or no loan at all.

Your credit score, also known as your FICO score, is a way for mortgage lenders to quickly determine how well you've managed money in the past. A credit score sums up how often you pay your bills on time. It?s a barometer on whether you misuse your credit cards. It also includes any bankruptcies that you've filed in the past.

If your credit score is a good one, one that is above 700, most mortgage lenders will approve you for a loan with the lowest possible interest rates. But if your score is a weaker one, though you might still receive a mortgage loan, you?ll certainly be forced to higher interest rates. Lenders do this to shield themselves from the extra risk they taken on by lending money to borrowers who have a history of missing payments.

Fortunately, you can boost a weak credit score. This takes time, though. Despite what you may hear from companies in radio and TV commercials, there is no quick way to erase bad credit. Improving your credit score takes time and effort.

First, contact the credit-reporting agencies that handle credit scores, Experian, Equifax and TransUnion, and order your credit report from each of them. Study each report, being on the lookout for possible errors. If you find any errors, immediately report them to the bureaus.

Erasing reporting mistakes will help improve your credit score. Unfortunately, this, too, is a long process. It will take a long time for the bureaus to amend your credit report.

After you?ve made sure that your report is accurate, the next step is to begin handling your finances wisely.

First, make sure to pay all your bills on time. Also, pay off the outstanding balances on your credit cares. And once you do, close most of your accounts.

Taking these steps will gradually boost your credit scores. A better score, though, won?t happen overnight. It takes time to erase bad financial habits. That?s why there?s no quick way to improve a credit score.

You may have to wait before applying for a mortgage loan. This might be the best course of action, anyway. You need to be financially mature before taking on the burden of a monthly mortgage payment.

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More information can be found about Buying a home with bad credit at Lonestar Credit

Get all the information and photos:: http://mortgagewide.info/improve-your-credit-before-buying-a-home/