Tips to Increase you Credit Score when buying a home
When facing a home loan situation where there is a credit sensitive scenario, these basic tips can help you to avoid disaster!
If you have good credit but your debt to income ratio is a little snug, your interest rate can make the difference between the loan size you want and the loan size you can have. To give you the most freedom, avoid:
- Using credit cards
- Making large purchases that will have a monthly payment
- If you have extra cash, talk to your Loan Agent about paying off debt to reduce or remove monthly payments
If you have good credit but, not a lengthy credit history, you may want to:
- Open a new line of credit or credit card **
- Have yourself added to an account of another person who has a history**
If your credit is generally in good shape and you are all set for what you are looking to do here is the golden rule for everyone:
- Do not run your credit too often. Once every 3 months to keep your approval “fresh” is sufficient and avoid having outside parties pull it until your transaction is complete.
In the unfortunate event that there are erroneous or old items on your report, we can often help to clean your credit up and this may result in a better ranking, this is case by case and will be discussed in the event that it is a necessity.
** Speak with your loan agent before adding any accounts to your report.
For a complimentary credit check and hard copy you can use over and over, email mike@mycahomeloan.com or call me at 1 800 239 1103.
About Michael
Michael DiVita, President of DiVita Home Finance, Inc., is a 20 year veteran of the mortgage industry. He has been involved in thousands of loan transactions. Recognizing that the mortgage process needs overhauling, Michael has been investing in and leveraging technology to provide his clients a better mortgage experience. Please subscribe to his blog to receive weekly, relevant mortgage/real estate news.
