With the current liquidity crisis in the real estate market, your credit is more important then ever. In todays' market, Banks and Mortgage Lenders are raising the credit standards and making it more difficult to qualify for  home loans.

Restoring your credit is the fastest way to qualify for a better quality mortgage and for some it may be the only way to get a mortgage loan.  Your credit score is one of the few variables that can be adjusted in time to impact the loan approval decision. 

Borrowers have more control than they realize when it comes to impacting their credit score and raising that score to impact the loan approval.  Simple ways to increase your credit score include requesting a credit line increase, paying down credit card balances to below 30% of the credit limit and making sure that the credit limit is reported to the credit bureaus.  These three actions can have a huge impact on raising your credit score.

Credit restoration and repair is often mis-understood.  It is simply the legal and legitimate process of eliminating derogatory credit information from an individual's credit report.  Credit Restoration can result in an increased credit score in a matter of weeks. Don't believe that you can't impact your credit score - you can. 

If you are in the market to buy a new home or re-finance out of an adjustable rate loan, focusing on restoring your credit may be the best option to impact getting that loan.  A higher credit score will have a positive impact on getting the loan approved AND in insuring that you get a better quality loan.

To make sure that you qualify for the best loan available to you here are a few tips:

1.  Start early.  If you plan to buy or refinance in the next six months, review your credit NOW.  The earlier you start the better.  You can review your own credit at http://www.annualcreditreport.com/.

2.  If you know that you have credit issues, contact a qualified mortgage professional that specialises in working with credit challenged buyers.  These professionals will have ties to reputable resources to help you improve your credit score. 

3.  Don't be embarrassed - just do it.  Mistakes happen and the longer you wait the greater the damage will be.  Seek the help that you need.

4.  Don't pay off old collections until you have had a qualified mortgage and credit specialist review your report.  Paying off old collections will make them more current and can hurt your credit score.  It doesn't make sense, I know, but it's true.

5.  Do not pay any money for credit repair services upfront.  A true professional will review and analyze your credit report at no cost. 

 In todays volatile credit and mortgage market, it simply makes sense to make sure that you get the highest credit score available to you.

---------------------------------------------------------------------------------------------------------------------------Kate Bourland is a Mortgage Consultant in Redding California.  She specializes in First Time Home Buyers and helping clients with challenged credit get the best home loan possible.  For a free credit or mortgage review, contact Kate at 530-244-4345.  She provides credit restoration services for clients throughout the United States and helps anyone in California get the best home loan for their needs!