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Imagine applying for a home loan for pre-qualification, and the loan offer sees that your credit score is lower than you like. What can you do? As a loan officer, there are a couple of strategies to help you improve your credit and get you approved for a home loan.
1. Credit coaching. We can advise on managing your spending habits and credit limits. For example, if you have a $5,000 credit limit, we’ll assess your balance. A balance of more than 30% of your limit negatively impacts your score, so we recommend increasing your limit or reducing your balance to below 30%.
2. Credit inquiries. We will also review your credit report for inquiries. Excessive inquiries within 90 days, such as applying for multiple loans or credit cards, can raise concerns for lenders.
3. Payment history. We will verify your payment history and ensure that payments are made consistently and on time. Late payments specifically significantly damage your credit score.
4. Credit repair specialist. If any negative items on your credit report need attention, we can connect you with credit specialists who can negotiate with bureaus and creditors to improve your score.
5. Other loan programs. While your current credit score may not be ideal, we can help you find a loan program that suits your financial situation. Although it may not be something you’d like if you’re looking for a conventional loan, you could apply for an FHA loan since it’s easier to work with many lower credit scores.
Improving your credit may take time, but it’s possible. We’ll work with you to create a strategy and provide guidance. If you want to improve your credit or find a loan that fits your current situation, please reach out at (801) 687-2018 or kkoller@umortgage.com. We can offer tips and connect you with the right professionals.
