Smart Tips to Improving Your Credit
If you are planning to buy a home soon, do not apply for any more credit. Sometimes you cannot always get around this if you have to get a car or another type of loan. Just don’t go and apply for numerous things all at one time. If you have numerous credit applications open all at one time in the same year, this will be a flag for potential Los Angeles mortgage lenders. Don’t give lenders a reason to deny future mortgage loans in Los Angeles.
If you have done plenty of things to improve your score but it is not working, then you may have the opportunity to buy down your rate. If you plan on staying in your home for five or more years, you might find this to be very beneficial. Normally the range is 1 to 3 percent of the mortgage, based upon percentage points. Basically, this means that you are paying interest upfront and the lender is willing to give you a lower interest rate. You can also achieve the same thing by putting down a big down payment on the loan. Banks won’t consider you to be as risky if you are willing to put a twenty five percent down payment on your mortgage in Los Angeles.
The down payment is the next important thing after your credit score. This gives the lender a reason to reassess the risk of your Los Angeles home loan. If you are able to pay forty percent of the loan up front, a lot of banks will give you a really good rate. You won’t be able to change your credit report immediately, but if you continue to make payments, you won’t be as much of a credit risk anymore. Also you will be offered better interest rates for the life of your loan.
For more information on getting the best mortgage possible call an expert mortgage broker in Los Angeles at Yousif Mortgage Services for a complimentary consultation: (310) 252-7268.