A borrower's credit score

A borrower's credit score will directly determine the interest rate. Non conforming home loans already have higher interest rates, but the lower a borrower's credit score, the more the interest rate soars. The best method a borrower has of lowering those high interest rates is to improve his credit score. The fastest way to improve a credit score is to pay down credit card balances to at least 20 percent of their limits. This lowers the balance-to-credit-limit ratio and can raise a credit score up to 30 points in as little as 30 days. Raising the credit score before applying for any non conforming home loans is wise.