Repairing Your Credit Is Possible With This Sound Advice

Repairing Your Credit Is Possible With This Sound Advice

Repairing Your Credit Is Possible With This Sound Advice

Your credit history and credit score are big factors in your ability to secure a mortgage loan and purchase a home. If your spending and payment habits, and other past financial missteps, have left you with a less-than-satisfactory credit score, you can still purchase a home. You’ll just need to do some work first. Start the process to repair your credit before buying a house.

Pull Your Credit

You’ll need to understand your credit first. Go to and pull your credit report. This is a free site sponsored by all three credit bureaus. Review every line, every creditor, and every balance. This step gives you the full picture of your finances.

Report Errors

It’s estimated there are errors on one in four credit reports. Erroneous late payments, fraud and having a common name are often the culprits. If you see errors, contact the credit bureaus to get them removed. This step may improve your credit picture immensely.

Get Current on Your Payments

Late payments are the biggest factor affecting your credit score. If you’re late on some of your debt obligations, get caught up as soon as you can. Get on a budget and use reminders to send your payments on time to avoid being late on anything again.

Pay Down Debt

If your credit card balances are near their limit, these are negatively affecting your credit score and your ability to get approved for a mortgage. Cut out all excess spending and pay as much on them as possible to lower the balances. Your target should be using no more than 30% of your total credit limit.

Don’t Apply for New Credit

Now is not the time to open a new credit card or buy a vehicle. Especially avoid those offers to open a new store credit card to receive a discount on your purchase. New inquiries on your credit mean additional risk, which can lower your credit score even more.

Stay Current on Your Payments

Yes, we mentioned this above. However, it’s so important that we want to make sure you remember it. Once you get caught up, make sure you stay caught up on all payments.

Control Spending

Stop overspending and charging your credit cards, or you’ll stay in this cycle of running up debt and struggling to pay it off. Write down a budget and do everything you can to stick with it. Keep your goal of buying a home in mind when you’re tempted to stray from your budget.

Stay the Course

Repairing your credit takes time, but it won’t last forever. Your credit scores are driven primarily from your actions within the last six months. If you get current and stay current on your payments, control your spending, pay down your debt, and avoid applying for new credit, you should see a big difference in your credit picture in three to six months.

Talk to your loan officer about home loans for people who have less-than-perfect credit.


Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020