Recently the Feds lowered the Prime Rate drastically to help salvage the U.S. economy. We all know there are many people holding sub-prime mortgages, many of whom are in financial trouble or soon will be. For those fortunate enough to have some equity in their house, perhaps this could be a good time to refinance. Even if you are holding a non sub-prime mortgage this could well be a good time to refinance or consolidate multiple mortgages into one low interest mortgage.
Any time you are in the market for a loan, whether a new mortgage, auto or even student loan, I can’t stress enough to know ahead of time what your FICO score is from all three major credit bureaus. Don’t let your lender hold the cards when it comes to your credit score. The more you know ahead of time, the better you can be prepared to qualify for the best interest rates.
Give yourself at least 3 to 4 months to take the necessary steps to improve your credit score, allowing you to qualify for the best interest rates possible. You will need a 3 bureau credit report and FICO scores from all three bureaus. With this knowledge in hand you can put together a game plan to substantially increase your credit scores.
Lenders almost always pull your FICO scores from one, or any combination of all three bureaus, so you will want all three because they will likely be a different number. I suggest signing up for a credit monitoring service. This will allow you to track the different scores as you implement your plan of attack and begin taking the steps to improve your scores.
This process will allow you to qualify for the best interest rates saving you thousands if not tens of thousands of dollars in the life of the loan.