Credit scores, along with your overall income and debt, are big factors in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:
1. Check for and correct any errors in your credit report.
Mistakes happen, and you could be paying for someone else’s poor financial management.
2. Pay down credit card bills.
If possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.
3. Don’t charge your credit cards to the maximum limit.
4. Wait 12 months after credit difficulties to apply for a mortgage.
You’re penalized less for problems after a year.
5. Don’t order items for your new home on credit
Such as appliances and furniture — until after the loan is approved. The amounts will add to your debt.
6. Don’t open new credit card accounts before applying for a mortgage.
Too much available credit can lower your score.
7. Shop for mortgage rates all at once.
Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.
8. Avoid finance companies.
Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.
This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, Knowing and Understanding Your Credit, visit www.homebuyingguide.org.
Rick’s knowledge, professional & personalized approach in assisting clients gain buying & selling success began in 1976; after graduating from the University of Illinois with a B.S. Degree in Finance, with special concentration in Real Estate and Urban Economics. He is the office’s Managing Broker, holding licenses in both Illinois and Missouri. Besides yearly sales achievement awards, Rick was twice elected President of the Quincy Association of REALTORS® in (1985 & 2007); and was honored by the Q.A.R. with “Realtor of the Year” award in 1990 and the “Outstanding Career Realtor” in 2004. Rick is experienced in residential and commercial sales and leasing; with an added background in the Management and Rehabilitation of rental property. He served as a commissioner (and Chairman) of the Quincy Housing Authority (for over 17 years) -a governing body providing oversight to over 300 subsidized housing units; which functions to insure the availability of clean, safe and affordable housing for low-income residents in our area. Rick previously held (for nearly 10 years) a “Pre-license Instructor” license; which allowed him to teach the necessary coursework for those seeking to join the Real Estate field.