How To Improve Your Credit Rating Before You Apply
A good credit rating is
essential if you want to take out a mortgage loan. But what if your credit
isn't so great? If you're planning to apply for a loan, there are ways you can
improve your credit history.
Open and use a savings account and a checking account
Pay bills by personal check
Pay monthly obligations on time
Obtain a major credit card, or some other means of establishing an ongoing
credit history
Be at the same place of employment for at least two years
Contact a loan officer to prequalify for the loan
When you go to a lending
institution to apply for the mortgage, you should be prepared to show the
following documents:
Pay stubs
Bank statements--two current monthly statements on all accounts generally are
sufficient
Earnest money--from a verifiable source
Employment verification--a form must be filled out by your employer
Tax returns
Gift letter--a letter must accompany any monetary gift used to purchase the
property, which should be given in the form of a check
Be sure to include all
names in full and all social security numbers.
