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Do you know just how to improve your credit scores?
- Pay your bills on time!
- Keep your balances low on credit cards - at least 50% below your allowable top loan amount
- Don't close unused credit cards or open new ones just to increase available credit - that's a red flag!
- Don't open new accounts too quickly.
- Do your "rate" shopping within a short period of time
- Be aware that paying off a collection account will not remove it from your credit report. It stays on for seven years.
Your interest rates will be higher, depending on your credit score. For instance, a borrower with a score of less than 680 could see an interest rate increase ranging fron .25 percent to one percent. For example, someome with a score from 660-679 will have a rate increase of .25 percent. On a $300,000 loan, that borrower could pay $2,250 in upfront costs to buy down the interest rate.
If the borrower doesn't have enough money to buy down the loan, that person might qualify for less home. A score lower than 680 can now also raise a borrower's mortgage insurance rate. With the added emphasis on credit scores, it is crucial for all of us to work on improving our credit rating.
One of the most important steps is making your bill payments on time! Being late on a mortgage payment - even one time - can lower your score 50 points.
Did you know? closing your credit car accounts once you have paid them off could also hurt your credit score? Why? because it lowers the amount of available credit.
Another good tip? check your credit reports for any errors at: http://www.annualcreditreport.com/. You can get one free credit report every year.
If you're planning to purchase a home, and your credit is "questionable" plan to start the process with a loan officer six months prior so you can get your ducks in a row and know what you can spend.
Need help? Give me a call at: 480.216-3334.
Our inventory is decreasing day by day......are we possibly moving that inventory due to the fact that this is a Buyer's Market? Today, our active lists total 55,276 - down, down, down. I'll keep you posted.
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