Helpful Tips to Cope with a Bad Credit Score

February 12, 2021
Integrity First Lending

Lenders use your credit score to identify the possible risks to offering you a loan. Based on your payment history, your credit score can either be poor or good. Remember that several factors, such as defaults, penalties brought about by late payments and the amount of money you owe, all play a crucial role in your credit score.

Aside from that, the length of time you’re in debt also affects your credit score. However, the expert team at Integrity First Lending has some advice for you for getting a low-interest rate for a home loan in Utah.

Helpful Tips to Cope with a Bad Credit Score

Reach Out to Your Current Lender

Staying in touch with your current lender is one thing you can try before looking for other companies to handle your mortgage needs. With your current lender, you can easily explain your financial situation, because they already have your financial background and other requirements needed to qualify for a home loan.

Discussing loan programs with your current lender will also help widen your options even with a bad credit rating. Additionally, don’t hesitate to consult other mortgage companies in Salt Lake City and find out other loan offers they have, specifically for clients with bad credit. Different mortgage teams have various kinds of offers, and there might be one that suits you best.

Check Out FHA Streamline Refinance

For your Utah mortgage, you may also opt to select FHA Streamline Refinance. An existing FHA mortgage is the foremost requirement to qualify for this type of loan. There are two types of loans that you can choose from when checking out the FHA Streamline Refinance — credit-qualifying and non-credit-qualifying. One of these options may fit your needs.

To qualify for this loan, you have to show proof of six consecutive mortgage payments. Nonetheless, all your fees must be paid on time and in full. It follows a strict procedure, but it results in lower monthly payments.

Explore the VA Refinance Loan

If you got your current mortgage in Utah from the Department of Veterans Affairs, refinancing with the Interest Rate Reduction Refinance Loan is a good option for you. This loan is one that doesn’t need a good credit score or a new appraisal. There’s no need for an annual fee to guarantee the loan, either. With the VA Refinance Loan, you can promptly refinance up to 100% of your home’s value. However, you need to go through a mortgage company, bank or a credit union.

Boost Your Credit Score

Like exam scores, bad credit is a thing you can improve on. If refinancing isn’t an option for you now, you can focus on increasing your credit score instead to qualify for the best home loans in Utah.

Keep in mind that there are many ways you can improve your poor credit score to qualify for the best mortgage rates in Utah. Create a healthier financial situation for yourself by discussing your options with Integrity First Lending today.

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