The bottom line when it comes to your mortgage payment is the lower your credit score, the more you’ll pay. If you want the best refinance rates for your next home loan it’s important to tune up your credit score before mortgage refinancing.
Check out this article from the TruthAboutMortgage.com:
If you’re thinking about purchasing a new home or refinancing, you should know that your credit score is hugely important. Why? Well, banks and mortgage lenders use your credit score(s) to evaluate your creditworthiness, which translates to a higher or lower mortgage rate, or even outright eligibility.
Common mortgage mistakes like not checking your credit before applying for a home loan can cost you thousands of dollars. Before you start applying for mortgage refinancing it’s important to check your credit reports for errors. Several years ago Congress passed a law requiring the three credit bureaus give you a free copy of your credit reports once per year and you can get them at AnnualCreditReport.com.
The website will try and sell you a credit score; however, you’re not required to buy one. You want to carefully review all three credit reports from Equifax, Experian, and Trans Union for errors. If you find errors there are procedures to dispute any mistakes you find and you’ll want to have these corrected before you start shopping for mortgage refinance offers.
You can get more tips before you refi by checking out my free Underground Mortgage Refinancing Videos.