Preparation is paramount when applying for a mortgage loan. The best strategy you can use is to plan ahead! You need to plan at least 4 - 6 months in advance. This should give you adequate time to make sure that your credit report is accurate and your credit scores are maxed out!

Here are 5 things you can do to maximize your credit score.

1. Review your credit report for accuracy

It’s a good idea to establish a relation with a mortgage lender early in the game. Have your mortgage lender pull a mortgage level credit report so that you can see what they ae seeing.  This will minimize any miss communication between you and the lender regarding the items on your credit report and credit score.

2. Make a List of any Negative Accounts Reporting

If you have negative information reporting on your credit reports make a list of this items.   Items like inaccurate, obsolete and erroneous items; such as late payments, charge-offs, foreclosures, medical bills, repossessions, bankruptcy’s, short sales, tax liens, collections and delinquent school loans.

3. Get Your Documents Together

Check to see if you have any supporting documents to disclaim the credit bureaus reporting. Any paid receipts, letters from the creditor showing the account was satisfied. Once you have these documents you can then contact the creditor to provide them with proof of satisfaction so they can update the credit reports.

4. DO NOT Make Any Major purchases

You’re going to be trying to reduce your debt as much as possible. The amount of debt you have makes up 30% of your credit score. Buying a new automobile or any other major purchase will increase your debt and increase your DTI (Debt to Income ratio). You’ll also want to start paying down your credit cards to less than 30% of the total credit limit allowed.

5. Don’t Open any New Accounts

Appling for credit cards or any other type of financing can reduce your credit score and is not advisable while in preparation for a new home loan. During this 4 to 6-month time frame you should be doing nothing but assuring your credit report is accurate, resolving any account issues and paying down debt.

By following these 5 steps your credit report and credit score will be in great shape when you finally go for your mortgage loan approval.

Some cases may require the assistance of a professional credit repair service to help with negative accounts reporting on the credit report. A reliable credit repair service can help you leverage your rights per the Fair Credit Reporting Act.

If you are interested in learning more about how a professional service can help you, go to professional credit repair service.