Good Credit is critical when it comes to obtaining the best interest rates and terms on a mortgage……….
Do Stay Current on Existing Accounts - One 30-day notice can cost you.
Do Continue to Use Your Credit As Normal - Changing your pattern will raise
a red flag and lower your credit score.
Do Call A Recommended Mortgage Professional - before making any address
or credit changes.
Don’t Apply for New Credit - Every time you have you credit pulled by a
potential lender, you may lose points from your credit score, including signing
for a loan.
Don’t Close Credit Card Accounts - if you close a credit card account, it may
appear that your debt ratio has gone up. Closing a card will affect other factors
in the score, including credit history.
Don’t Max Out Credit Cards - Try to keep your credit card balances 30% below
their limit during the loan process.
Don’t Pay Off Collections or “Charge-Offs” - If you want to pay off old accounts,
do it through escrow. Request a “letter of deletion” from the creditor.
Don’t Consolidate Your Debt - When you consolidate all of your debt onto one
or two credit cards, it will appear that you are “maxed out” on that card and you
will be penalized.