Vanderbilt Mortgage Provides Credit Tips for Homebuyers

MARYVILLE, Tenn., June 24, 2015 /PRNewswire/ -- Vanderbilt Mortgage and Finance, Inc., a Berkshire Hathaway company, is offering potential homebuyers credit score improvement tips to help aid in purchasing a new home.

A homebuyer's credit rating can play an important role in the buying process. A person's creditworthiness may affect the amount one can borrow, the interest rates and even the ability to obtain a mortgage loan in the first place.

"A consumer's credit is one of the biggest factors that goes into the mortgage application process," said Eric Hamilton, President of Vanderbilt Mortgage. "Before applying for a loan, it is crucial to get your credit in the best shape you possibly can."

In order to help customers build good credit and increase their ability to obtain better loan terms, Vanderbilt Mortgage and Finance, Inc., is offering these tips for improving credit:

• Pay bills on time
  • Late or missed payments on any credit accounts such as credit cards, mortgages and other loans could result in a drop in credit score. Making payments on time, making additional payments whenever possible and paying extra to principal will also help to keep a good payment history and decrease the payoff timeline. Using an Extra Principal Payment Calculator tool can help calculate the savings that come with paying extra.
• Minimize outstanding debt and keep existing debt manageable
  • Paying statement balances in full instead of letting debt accumulate can improve credit scores, which can result in being offered better terms from lenders. Lenders often check a borrower's credit report when they apply for a loan and measure the amount of debt they're carrying against the loan amount they've requested. Excessive debt is one of the factors that could cause a lender to decline the application.
• Avoid applying for unnecessary credit
  • Credit applications can appear as inquiries on credit reports, which suggest to lenders that an applicant may be taking on additional debt. Be aware of sales that offer purchase discounts if you apply for a credit card. These could show up as inquiries on your credit report. These inquiries remain on credit reports for two years. Instead of applying for additional credit, use existing lines of credit to prove responsible credit management by paying bills on time and paying off debt quickly.

"There are a lot of steps you can take to improve your credit, but it's important to remember that credit scores don't change overnight," said Hamilton. "It takes time to increase your credit rating, and while it may feel like a slow-moving effort, it is well worth the wait when you get to open the door to a home of your own for you and your family."

For more credit tips, view the full Guide to Credit, as well as other useful guides for homebuyers, on vmfhomeloan.com.

About Vanderbilt Mortgage and Finance, Inc.

Vanderbilt Mortgage and Finance, Inc. is a national housing lender that specializes in financing manufactured homes. In business for more than 40 years, the company currently services more than 180,000 home loans and works hard to tailor loans to each family's needs. Vanderbilt has an A+ grade from the Better Business Bureau and is a Berkshire Hathaway company. For more information, visit VMFHomeLoan.com.

NMLS Disclosure

Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000, NMLS #1561, ( http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic. #6911), Illinois Residential Mortgage Licensee, KS Licensed Mortgage Co. (SL.0000720), Licensed by the NH Banking Department, Mississippi Licensed Mortgage Company, MT Lic. #1561, Licensed by PA Dept. of Banking.

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SOURCE Vanderbilt Mortgage and Finance, Inc.

Related Links

http://www.vmfhomeloan.com