If you're looking to buy a home in Denver, it's important to have a good credit score. A high credit score can help you qualify for a better mortgage rate, which can save you thousands of dollars over the life of your loan. If your credit score isn't as high as you'd like it to be, a Denver mortgage company can advise you on steps you can take to improve it.
One of the first things a Denver home loan advisor may recommend is to pay off any outstanding debts. High balances on credit cards or loans can lower your credit score, so paying them off can have a big impact. The mortgage company may also suggest reducing your credit card balances to below 30% of your credit limit. This can help boost your score as well.
In addition to paying off debts, a mortgage company may advise you to check your credit report for errors. If you find any mistakes, you can dispute them with the credit bureau and have them corrected. This can help improve your credit score.
Finally, the mortgage company may recommend establishing a credit history if you don't have one. This can be done by opening a credit card or taking out a small loan and paying it off on time. Building a credit history can help improve your credit score over time.
By following the advice of a reliable Denver mortgage company, you can take steps to improve your credit score and increase your chances of getting a good mortgage rate when you buy a home.