Your credit score is one of the main factors in whether you get a steal of a deal when buying a home. In other words, a healthy credit score increases your chances of getting better mortgage rates in Jacksonville, FL. And that can translate to thousands of dollars in savings over the life of your loan.

If you buy a home, here’s how to boost your credit score and land a better mortgage rate.

Check Your Credit Report

Make sure you know where you stand financially by checking your credit report – which serves as your benchmark that guides you on what to do so that you are off to a good start in your home-buying journey. You can request a free credit report from AnnualCreditReport.com or other institutions that provide the same service. Check the information for errors (payments incorrectly labeled as late, outdated accounts), high balances, and accounts in collections.

Pay Down Credit Card Balances

Credit card balances may hurt your credit score because of an unhealthy credit utilization ratio – the amount of credit you use compared to your credit limit. The good rule of thumb is to keep your credit utilization ratio under 30%. (Pro Tip: Paying off high-interest cards first can improve your score faster and free up cash for future down payment.)

No New Debt Before Applying

Defer opening new lines of credit or taking out loans until your application is approved. New debts can negatively impact your credit score by lowering your chances of finding better mortgage rates in Jacksonville, FL. What you should do, instead, is to focus on stabilizing your current accounts.

Work with a Local Mortgage Broker

Some Jacksonville-based mortgage brokers offer credit coaching as part of the pre-approval process. What they do about that includes:

• Simulating how changes will affect your score
• Recommending quick fixes
• Timing your application for the best rate

Indeed, a reputable mortgage broker is a friend you should highly consider working with during your home-buying journey.

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Are you looking for a reputable mortgage company to help you get better mortgage rates in Jacksonville, FL? Look no further than HomePlus Mortgage. Contact us today at 800-810-PLUS (7587) for inquiries.

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