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4 Helpful Credit Score Tips for House Loans

By George Hauser
Published: Thursday, June 17th, 2010

When I was young, my dream house is simple. This is something just enough to accommodate my family. At an early age, it is easy to say such. The choice is different for an adult. An adult has more to consider.

Often an older person envisions a bigger, modern and better architecturally designed house. With this, one of the best actions to homeownership would be to seek financial assistance from a lending institution. However, applying for a house loan is a process and demand many requirements because they need to review your credit report and score. Experts say borrowers must follow these credit score tips to be guided all the way.

To begin with, the first among the credit score tips to be achieved is to improve one’s credit score or FICO score. This may help you get a loan easier with better interest rates and term payments. According to Barry Paperno, FICO customer manager, in mortgages, the higher the credit score, the lower the interest rate to pay. How can an individual improve his score to avail of house ownership? He has to follow the following:

Since financial companies are like fiscalizers to scrutinize information, the borrower should establish the correctness of his credit report. If there are inaccurate entries, it will cause a delay or even disapproval of a house loan application. If there are to be changed in his entries, he can change the information sending mail to the companies concerned and check for the corrections after a month.

Not only does the borrower need check his credit report entries, but he must not have many other existing credits in other banks. Having excessive loans will give an impression to the financial institution that you might inconsistently pay them back in the future. Credit score tips would say that it is best to have one credit at a time.

Likewise, a borrower should have established credible credit history, meaning borrowers should not have a negative credit records or bad history of collection and delinquent accounts. Similarly, outstanding balance should be settled. It is just like cleaning your credit record. Although all credit score tips are important, it seems, this has the greatest weight because money lenders want every borrower to return their money on the agreed length of time without delay.

Finally, the length of credit history has an impact on your credit score which may hurt your loan application. It is believed that the older your credit account is, the better chance you may have. Accordingly, 10 years account with good background is great. On the contrary, if you are new in the credit business, do not open too many credit accounts. It would be dangerous.

To sum up, applying for a house loan to build your dream house is not that difficult if a borrower follows the credit score tips given like having accurate information on credit report, not a delinquent borrower, and lastly aged account with good standing. These are great ways to secure your dream house.

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