Your credit score is extremely important when trying
to get a mortgage.
Some helpful tips on how you can improve you credit score.
If you are applying for a mortgage soon and you feel that there are some
issues to deal with, it would be prudent to pull your own credit ASAP in
advance. The process of correcting derogatory items may take 30-60 days; if
there are excessive accounts, they can take up to 6 months to correct.
 If you feel that your credit file is fine or there are only minor issues
that you have documentation from the creditor stating that they are
correcting or clearing the derogatory item, then enter the
mortgage
application process. If there
are minor issues, these can be easily handled by one of
Colorado Westerns
loan officers, who are knowledgeable enough to know that they are can be
easily dealt with in a timely manner.
Maintaining High Credit Scores
Make sure that your file information with the three credit reporting
repositories (Equifax, Experian and Trans Union) is accurate and up to date.
Order a copy of your credit report at least once a year, and dispute any
inaccuracies in writing.
Credit inquiries over the past two years can affect your credit score.
Inquiries in the past 90-days affect your score the most; your score will
slowly rise as each month passes if inquiries in current month are less than
the number of inquiries 3-months ago. The
same applies with inquiries 24-months ago.
Recent changes have made credit report inquiries less of a
factor. A series of like requests (ie: multiple mortgage inquiries) would be
treated as one request if made in a 30-day period. The change is the result
of credit bureaus and lenders accepting the fact that consumers can and do
shop around for the best mortgage or auto loan.
Credit card solicitations you receive in the mail do not count against your
credit report, unless you take them up on their offer.
 The two main factors establishing your credit score are your payment history
and the balances that you owe. Bankruptcy filings, collections, judgments
and foreclosures can stay on your credit report for up to 10 years, can
significantly reduce your credit score.
It would be safe to say that late payments work against you. It's extremely
important to pay bills on time, even if it's only the minimum monthly
payment. If you are unable to pay all of your bills one month, be sure to
pay the mortgage and sacrifice your credit card ratings. A mortgage late is
serious business in the mortgage business; a mortgage late can haunt you for
up to two years, making it nearly impossible to obtain the most attractive
mortgage financing available.
Don't "max out" your available credit lines. The balance on your open
revolving and installment accounts is a factor, meaning that the lower
balances the better. It is best to maintain balances that are no more than
one-third the size of the credit line. As far as timing is concerned, try to
pay down your cards on-line a couple of days before the statement cutoff
date; as the balance outstanding on the cutoff day is the balance that will
show on your credit report after the first week of the following month.
By following these simple steps in managing your credit, it's possible to
add 30-70 points to your scores.
To get started on your mortgage application, fill out our "Quick Application" or
"Contact Us" or call us immediately at 303-786-7575 or 1-800-DENVER, CO today.
We're standing by to assist you!!!
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