http://firstintegrity.com/ Home Loan Expert In St. Louis, MO - The Do's and Don't of Credit. For more info. call First Integrity Mortgage Services (800) 263 - 3959.
Credit is one of the most important components of the loan process. When we first pull credit, we are using that to make our decision. It is extremely important that your credit does not change during the loan process.
Do’s and Don’ts of Credit During the Loan Process
• Do Pay Your Bills on Time. It is important to pay on time. Any late pays, even one day late, during your loan process, can result in denial of your loan. Even if you have flawless credit everywhere else, this can negatively impact your chances of loan approval.
• Don’t Apply for New Credit. When you do this, it will generate a “credit inquiry”. Credit inquiries lower your total credit score. Lowering your credit score could make you ineligible for certain loan products or make your interest rate higher.
• Do Pay Off Judgments. When you do this, you MUST get a “Satisfaction of Judgment” from the courts. If you don’t get this, it will likely remain on your credit.
• Don’t Consolidate Your Credit Cards onto One Card. When you consolidate multiple credit cards onto one card, often times, by removing all of the balances from the others and replacing them on a different card, it will push you above 50% of your credit limit. This will lower your credit score. If you are trying to save money on your interest payments, you need to check with your loan officer to come up with a plan on accomplishing that goal.
• Don’t Close Credit Card Accounts. Every time you close a credit card, it will lower your total amount of credit. Lowering the total amount of credit can demonstrate a lack of credit management. The better you demonstrate credit management, the higher your scores.
• Do Keep Your Credit Cards Under 50% of the Limit. Keeping your credit cards under 50% of your credit limit helps to keep and increase your credit scores.
• Do Review Your Credit Report for Accuracy. If you notice something on your credit report that is inaccurate or does not appear to be yours, talk to your loan officer before you take action. Sometimes, if you dispute an item on your credit report, the reporting company deems this as a blemish on your credit report. Thus, negatively impacting your credit score.
• Do Contact Your Loan Officer. ALWAYS contact your loan officer before you make any credit decisions. Even if you think it’s the right decision, it could negatively impact your credit.
Remember, everything you do, regarding your credit, can impact you negatively during the loan process, even if it benefits you financially. So, ALWAYS check with your loan officer before you make any adjustments. Always, always contact your loan officer before opening new credit. We hope this helps.
Also, if you are interested in a consultation about PowerPlus, looking to compare mortgages, have a question about interest rates, or different homes loans like FHA or aVA loan or any other information to ensure you get the best home loan in Missouri or Illinois then we invite you to call the number below.
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