How To Get The Most Out Of Your Home Mortgage Loan With Good Credit

Sometimes so much is talked about how to solve the problem of having bad credit, but what about when you have an excellent credit rating? Good credit is considered to be a credit score of 650 or higher. How can you get the best interest rate and loan terms to make your good credit history work for you? Even with excellent credit, you have to be careful not to get talked into a loan that may not be the best one you could qualify for.

Over 30 million people in the U.S.A. have credit scores low enough (less than 620) to make shopping for low mortgage loan rates very difficult at best. The major credit reporting agencies use a slightly different system to arrive at a credit score. The best known is called the FICO score, developed by Fair Isaac and Company (FICO). A FICO credit score can range from 300 to 800. Most borrowers fall into the 600-800 credit score range.

A high FICO score is your reward for paying bills on time. This is one of the most important factors that determine your California home mortgage loan rate. If you've had a few credit "bumps in the road" recently, and you're asking yourself, "How can I improve my FICO credit score"? Here are 5 ways to boost your FICO credit score.

Here are some tips to help you find the best loan for your great credit history:

1. Don't maximize out your credit cards. The smaller balance gives you a wider difference between your balance and your credit limit. Also, if you are planning to purchase a new car or other major item, wait until you get that low mortgage loan rate.

2. Apply with as many mortgage companies online that will provide you with more than one quote per application, as long as they will not pull your credit with your application. If you are about to start applying for a mortgage, you don't want to have your credit pulled until you have narrowed down which mortgage company you want to work with. Every time your credit is pulled, your FICO credit score drops.

3. Paying your bills on time is the first step in improving your FICO credit score. Late payments can have a big negative impact on your FICO score, 30 days or more late on one account can lower your FICO score 50 points or more. If you don't like writing checks, go online and automate your bill paying.

4. Talk to your lender about closing costs. If you have excellent credit, the lenders should be falling over themselves to get you a loan. Ask for special treatment. Find out what fees your broker or lender may be able to reduce or remove from your closing costs. Find out if they will match lower fees offered by another lender.

5. Make sure your lender is offering you excellent customer service. Are they returning your calls quickly? Are they answering all of your questions to your satisfaction? Have they thoroughly researched all of your loan options and offered you more than one possibility? If they haven't, you should probably look somewhere else. With good credit, you have no reason to be a quick, easy sale for a lender.

6. Research interest rates, mortgage information and articles online so that when your lender offers you a loan package, you will know about the fine print ahead of time. Whether you are purchasing for the first time or refinancing, it will help you to understand more about the mortgage process.

7. If you are sincerely interested in improving your FICO credit score, bankruptcy MUST be avoided! Bankruptcy is more negative than late payments or collection accounts.

If you close an old account it could make you look like a "rookie" in the credit world. A factor in obtaining credit is how long you've had credit. If your FICO credit scores are over 620, but you want to raise it, obtain a copy of your credit report and request that the credit bureau remove any errors.