November 30, 2014 0likes 520 views When it comes to purchasing a home, it is important to establish good credit. While it is possible to obtain FHA loans in Pompano Beach without any credit, the home buying process itself will be much easier if you have already established yourself to have good credit. Credit cards and bank loans are generally the only things that show up on your credit report, so even if you have been paying rent and utility bills, these will not help to establish your credit. If you currently have no credit, there are ways that you can begin building it up, but you need to make sure that you are building credit wisely and that you are not hurting your credit score instead of helping it. Opening a credit card is a good way to start establishing your credit. By utilizing your credit cards and paying them on time, you are establishing credit history. You are also proving to your Pompano Beach mortgage lender that you can pay your bills on time. There are, however, a few things that you need to be wary of when using your new credit card. Make sure not to open too many lines of credit, or you could end up spending more than you can afford to pay back. Also, make sure to keep your credit utilization rate between 1% and 30%. Anything over 30% can hurt your credit score. You should also be sure to check your credit report for any errors that might be on it. If you do see any errors, be sure to dispute them right away so that they cannot harm your credit score any further. Once you have established good credit, you are much more likely to get a good interest rate on your mortgage in Pompano Beach. Your credit score is not the only factor that goes into determining the interest rate on your home loan, but it does play a large part in ensuring affordable home financing in Pompano Beach. A credit score of around 660 should be able to get you a decent interest rate on a mortgage. In order to get the lowest interest rate available, you will need a credit score of at least 760. Anything in between these two scores should still qualify you for attractive interest rates. If you do have a low credit score, you can still obtain a mortgage in Pompano Beach, you just may have to deal with increasingly high interest rates. Here at Ace Mortgage Loan Corp., we have been helping our clients navigate the mortgage market since 1996. We can help you obtain a mortgage, even if you do not have a credit score of 760 or higher. If you are interested in obtaining a mortgage in Pompano Beach, you should call us today at (954) 777-4774. We can help you choose the best mortgage for your individual situation and look out for your best interests.