How to Get Your Credit Score Up — Week 4
This series shines a light on the importance of your credit score when buying a home. Most buyers need to take out a mortgage, and that’s when your finances become an open book. Lenders will need to gauge if you’re worth the risk to lend you money, and this series will help you learn some important strategies so you don’t miss out on becoming a homeowner.
You want to keep it simple and straightforward with your finances as you lead up to buying a home. Nothing extravagant or excessive during this time.
It’s all about what NOT to do!
Whether you’re buying your first home, your next home, or even refinancing, you need to avoid some risky actions that could hurt your credit score and, ultimately, block you from getting the mortgage you want.
Lenders will look at you and your credit history thoroughly before they pre-approve you and even again once you are under contract and on your way to closing. Don’t think you’re off the hook once a lender pre-approves you!
Know these 10 Guidelines and stick to them as you begin the home-buying process.
They’re your handy reminder of what NOT to do – so you can keep your credit score on track from start to finish. Better yet, follow them well before you even start looking for a home so your finances and score will be well regarded by lenders.
At first glance, these 10 Guidelines seem very easy to follow. However, you’d be amazed at how ignoring just ONE of these items can do damage.
1. Don’t change jobs, become self-employed or quit your job.
2. You should not buy a car, truck or van (or you may be living in it)!
3. Refrain from using charge cards excessively or let your accounts fall behind.
4. Do not spend money you have set aside for closing.
5. Not a good time to omit debts or liabilities from your loan application.
6. Hold off on buying furniture. Even if you’re about to go to settlement, please refrain from doing so.
7. Not a good idea to have additional inquiries on your credit.
8. Please do not make large deposits without first checking with your loan officer. (It could be suspicious to suddenly have lots of money; a loan or gift from family needs to be acknowledged.)
9. Please do not change bank accounts.
10. It’s a bad idea to co-sign on a loan for anyone.
I hope you enjoyed this new series. Take a look back at the articles from the 3 other weeks and please give me a call or send me an email if I can answer any questions: (530) 566-5085 realagentcarla@gmail.com.
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