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Repairing Credit before Refinancing Your Dallas Home

By Allison E. Beatty
Local Lender Columnist
Jun 15, 2006
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If you own a home in Dallas and want to utilize the equity in your home, the easiest solution often is to refinance your mortgage. If you have credit issues to correct, however, you will need to do so before applying. Here's how to improve your credit standing in the Dallas credit community and get the mortgage refinancing you need.

What Mortgage Lenders Look For

The interest rate you'll pay when refinancing is largely related to your credit score and history. When evaluating credit, Dallas lenders want to see a good, stable history of credit payments from:
  • Mortgages
  • Car payments
  • Credit cards

Repairing Mortgage or Other Credit

If your credit history needs a little work, you might need at least three to six months to improve your standing. Here are some steps to take:\
  • Pay down unnecessary debt.
  • Create a budget and get your spending under control.
  • Do your best to pay off overdue accounts and bring the accounts into good standing.
  • Don't apply for or open new credit accounts.

Check Out Your Credit Report before Refinancing

Any Dallas mortgage lender will review your credit report when evaluating your loan. Take the time to review the information first, so you can:
  • Check the report for accuracy.
  • Report any mistakes immediately. The bureau has 30 days to investigate the error. If it can't be substantiated, they must remove it from your report.
  • Be prepared to answer questions about any credit problems.

Get Ready to Apply for Refinancing

After taking these steps, you'll need to get ready to apply for a mortgage refinancing. Here's what you'll need:
  • Gather your last two paycheck stubs and checking/savings accounts statements.
  • Shop around with various Dallas mortgage lenders - look for quick closing options, flexible loan programs, a variety of mortgage loan programs and good customer service.


About the Author
Allison E. Beatty is a syndicated real estate writer who has been writing columns for 15 years.