740 is a pretty lofty credit score; most American homeowners fall into the 600 range. If you’re considering a new home loan you might be disappointed to find that the refinance mortgage rates you’re being quoted are higher than what lenders are advertising. This is because your quotes are based largely on your credit score and loan-to-value ratio. Here are several tips from Dan Green from the Daily Mortgage Reports to help you avoid falling victim to your credit when mortgage refinancing:
Most people know that low credit scores influence the mortgage rates for which they’re eligible. With lower scores come higher rates. What most people don’t know, though, is that low-FICO families pay more closing costs, too. Today, low credit scores are more punitive than ever.
If you want today’s lowest refinance mortgage rates for your next home loan it’s a good idea to clean up your credit before applying. You can get started by visiting the website AnnualCreditReport.com to request a free copy of your credit reports. The credit bureaus are required by law to give you a free copy of your credit history once per year and do so through the Annual Credit Report website. If you find mistakes in your credit reports you’ll need to dispute the incorrect information with each credit bureau and allow enough time for the correction to be reflected in your credit score.
Once everything in your credit reports is correct you can improve your score by paying down the balances on your credit cards and avoid opening any new accounts for at least 90 days before applying for mortgage refinancing.
You can learn more about getting today’s lowest refinance mortgage rates without paying unnecessary fees by checking out my free Underground Mortgage Videos.