The all-important credit score. Something which you didn't pay too much attention to until you realized you wanted to buy a house. This article has information on how you can repair your credit score

Give Your Credit Report a Spring Clean

Of course, now that the time has come and you want to apply for a mortgage you now realize that the damage has already been done. Or has it? If you are looking at your credit score and don't like what you see, all is not lost. With years of providing home buyers with the financial security of title insurance in Miami, FL, Riva Title Company has a post to share on how you can give your credit score a bit of a spring clean.

I Don't Remember That?!

The first step to repairing your credit score is to ensure that the items being used to calculate it are correct and your own. Obtain a copy of your report and go through it with a fine-tooth comb for any irregularities or errors. Pay attention to the following:
  • An address you have never lived at
  • A cell phone you didn't own
  • An application you didn't make
  • A fine you didn't accrue
  • Late payments which you made on time
  • Debts which you have already cleared
Those are the most common six items which adversely affect homebuyers credit scores. If you notice any of the above or anything else that doesn't seem right, query it with all of your credit reporting agencies and ensure it is either fixed or removed.

Consolidate the Big Items

Do you know what doesn't look good on a credit report? Lots of small obligations which could easily be missed or forgotten. If you have a lot of smaller debts or outstanding payments, consider a debt consolidation loan to roll them into one repayment. This helps to improve how your future repayment ability looks on paper by removing liabilities such as numerous lines of credit. If you are buying a home, be sure to complete your due diligence. Speak with Riva Title Company at 786-787-7888 and ask about how a title search and title insurance policy can provide you with financial protection over the title of your home. Don't delay - get title insurance in Miami, FL before you sign.

Close as You Go

Whether you decide to consolidate your smaller debts into one larger one or continue to make individual payments, be sure that you close accounts and lines of credit as you pay them all off. Do be tempted by the 'I'll just keep it open for emergencies' line because it doesn't work. The reason to close these lines and accounts is that they are seen as a liability by a mortgage lender. If a mortgage lender sees that you have three lines of credit available with $30,000 each, it can be considered a debt because the lender can't guarantee that you won't be given a loan and then run up more debt, affecting your ability to repay the mortgage. As you close your accounts, contact your credit reporting agencies again and confirm that the debt has been listed as paid or removed entirely.

Get a Credit Card

It can seem strange to open a line of credit for the purpose of applying for another, but with the current credit score system, it is required. When a mortgage lender looks at your credit history and can't see any repayment history, they have no information to base their decision on whether or not to loan you hundreds of thousands of dollars. If the concern with your credit score and history is that you don't have one - get one. Obtain a small credit card and deposit your monthly salary into it. Then, use the card to pay for your monthly bills and expenses. Use direct debits as much as possible. By doing this, you can show a mortgage lender your continued ability to manage debt.

Smart Buyers Get Title Insurance in Miami, FL

Once your credit score is in order, it's time to apply for your loan. Previous articles on this site can provide tips to help. Of course, once you have found your dream home, don't forget to do your homework. Speak with Riva Title Agency at 786-787-7888 and ask about how title insurance in Miami, FL is protecting home buyers all over the state. Available only prior to closure, a policy for title insurance in Miami, FL provides homeowners with the confidence that should their ownership of the title be challenged, protection is in place.