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If you can raise your credit score, you can get a lower mortgage rate. Here are some tips.

Lower rates mean lower monthly mortgage payments and lower interest payments over the life of your loan.Tips to give your credit a boost to get the lowest mortgage rates.

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If you can raise your credit score, you can get a lower mortgage rate. Here are some tips.

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  1. 4 WAYS TO INCREASE YOUR CREDIT SCORE FOR LOWER MORTGAGE RATES SOURCE-WWW.HSH.COM

  2. Your credit report and score are two essential elements used by lenders to decide whether or not you'll be approved for a mortgage. The stronger your credit profile, the easier it is to get a loan at the lowest possible rate.

  3. KNOW WHERE YOU STAND Understand your baseline credit status, by running your credit reports and getting your credit score. Determine if you need to improve your position.

  4. UNDERSTAND HOW YOUR CREDIT SCORE IS CREATED Your FICO score is used by 90% of top lenders while making lending decisions.This score is calculated using both positive and negative information in your credit         report. There are five main components to your credit score: · Payment history: 35 percent · Amounts owed: 30 percent · Length of credit history: 15 percent · New credit: 10 percent · Types of credit used: 10 percent Onc you know where you stand and appreciate how your score is calculated, you can take action on four fronts.

  5. 1.ELIMINATE ANY DISPUTED ACCOUNTS Credit report errors that have been disputed are labeled as such on your credit report. Disputed accounts must be closed before you apply for a loan so that an accurate score can be calculated. You can remove disputed accounts by contacting the credit bureau and information provider and asking to have the accounts moved out of disputed status.

  6. 2.PAY BILLS ON TIME Late payments and collections leave major blemishes on your credit report, according to myFICO.com. Paying your bills on time is the only way to keep a positive payment history and avoid late fees. Review your credit report annually to catch and correct possible errors.

  7. 3.USE CREDIT WISELY Follow three steps for maximizing your FICO score: 1) Pay all bills on time, every time 2) Keep balances on credit cards low 3) Apply for credit only when you need it If your goal is to improve your credit score and qualify for better rates and terms, carefully manage your household cash flow.  

  8. 4. KEEP ACTIVE ACCOUNTS OPEN Don't open or close accounts prior to applying for a mortgage loan, as this can negatively impact your credit score. Doing so can change your credit utilization calculation, affecting your score. When an account is closed, for example, the balances on other credit card accounts remains the same, but the total amount of credit available to the borrower decreases, so your utilization rate appears to increase.

  9. Get more help at HSH.com HTTP://WWW.HSH.COM/FINANCE/MORTGAGE/INCREASE- CREDIT-SCORE-LOWEST-MORTGAGE-RATES.HTML SOURCE

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