When mortgage lenders review your application, they look at your ability to pay back the loan and your willingness to pay back the loan. Your income-to-debt obligation ratio is key in determining your ability to repay, while your credit score is essential in determining your willingness to repay. Ultimately, your credit score drives whether you qualify for a mortgage and determines the interest rate you will earn.
By taking steps to manage your finances, you can improve your overall credit score. There are many factors that determine a credit score besides late pays. Are you currently carrying high balances on your existing credit cards or line of credit? This can affect your overall score. How many open credit accounts or trade lines you have can be a factor. Surprisingly, too much available credit can also impact your credit score.
Our Credit Enrichment Program pairs you with one of our specialists to assess your current credit situation. Our specialists will work with you to develop and implement strategies to improve your credit score. This may include creating savings plans, establishing repayment schedules, closing/consolidating certain accounts or disputing information on your credit report. Our specialists will work with you to strengthen your profile through good sound financial practices. By getting your finances in order, this should greatly improve your credit score giving you a greater chance to qualify for a better loan.
Contact Kalamazoo Mortgage today to help you get back on track.