Lowest Mortgage Rates 4U

Establishing Your Credit Don't have credit? Would you like to improve your credit? Building good credit doesn't have to be difficult, but it does require time and patience. If you would like to get a mortgage loan with a low interest rate, you have to earn it. You cannot simply expect the same good interest rate as someone else may receive. Lending money to someone (including you) involves a certain amount of risk. The less risk a lender perceives, the less interest he/she is willing to charge. The way a lender evaluates risk is by performing a credit check and by evaluating your credit score (in addition to other things). Therefore, the way you can get the best deal (lowest interest rates) for yourself is to get prepared as soon as possible. Follow these tips and you're on your way:

• Pay your bills on time.
  Credit scores emphasize your most recent payment record. Paying on time raises your credit score. If you've been late, start paying on time!
• Pay at least the minimum amount required.
  You can always pay more - and it's a good idea if you can afford it. But you should never pay less than the minimum.
• Keep your credit card balances low.
  Don't "max out" your credit cards - that can lower your credit score.
• Don't apply for too many loans or new accounts.
  Applying for a lot of credit in a short period of time may concern lenders that you won't manage your debt well. Only apply for credit when you need it.
• Keep your debt-to-income ratio at 20%.
  Generally, you should not have credit card or other installment debt that's more than 20% of your net monthly income.
• Establish credit if you don't have any.
  Open a free or low-cost checking or savings account and make regular deposits. Only write checks when you have money to pay for things. And apply for one or two credit cards, use them carefully, and pay them off each month.