When Real Estate markets across the country started to collapse around 2006 there were sweeping changes that took place designed to help the industry recover. One of the changes included tightening lending standards. It become quite obvious that many of the borrowers who procured loans had no business getting them in the first place.
Quite a few of the borrowers were able to get loans via mortgage vehicles called “no documentation” loans. Basically the types of mortgage products allowed the borrower the ability to avoid documenting where their income was coming from. You are probably thinking that doesn’t sound like a great idea. Ding, ding, ding, you are correct! This was not a sound lending practice.
Today one of the biggest factors for borrowers getting a mortgage is having great credit scores. Those that have the highest credit scores are rewarded with better mortgage rates. It only makes sense that if you are in the market to purchase a home you would want your credit score to be sterling.
There are a number of things you can do to increase a credit score that are fairly obvious like paying your bills on time and not defaulting on a loan. If you have gotten into trouble financially in the past or are just looking ahead to the future, getting a higher credit score should always be something that is in the back of your mind. If you are wondering how to increase a credit score to get the best mortgage rates be sure to read the link to the article provided.
An in depth discussion is made that describes all the ways for you to maximize you ability to get the best possible credit score in the shortest amount of time.