Steps for getting a good mortgage


United States, 13th October: Are you looking to buy a home in the US and want to get the best loan? Here is the article to help you meet your goals— 

United States, 13th October: Are you looking to buy a home in the US and want to get the best loan? Here is the article to help you meet your goals—

Having a home is considered to be a biggest asset and a biggest investment by any person. However, all of us do not own a house. And if you are also one of aspirants for getting a home loan to purchase a home in the US, now is the right time to do so especially as the house prices in the US have begun moving towards stability.

According to a latest S&P Case-Shiller Report, prices of homes in the US saw an increase of 0.6 percent in the month of July this year.

However, getting a mortgage is quite tough these days especially if your credit scores are poor, says the Zillow Mortgage Marketplace report. That’s the reason why one-third of consumers fail to qualify for getting a mortgage.

Those with a credit score less than 620 did not get any quote for a mortgage.

And since you want to get a loan for buying a house, you need to improve your credit scores.

Here are the steps for improvement of your credit scores—

a.) Timely payment of your bills--If you have a poor credit score but become punctual in paying your bills and paying your debts, then you can considerably improve your credit scores over the time, says a senior financial analyst with Bankrate.com, Greg McBride.

Those with a credit score between 700 and 740 are considered good candidates for getting a loan but not necessarily at best interest rates. However, having a credit score of above 740 will get you a loan at best rates of interest.

b.) Check errors in credit report—You must have thorough knowledge about your credit report and must ask for deletion of all negative items in your credit report, cautions president of Optimum Capital Management, Ryan Mack.

c.) Don’t open new accounts too quickly—Since, opening new credit accounts will lower your credit scores and the average age of credit accounts, so, you must not open new cards in a short span of time.