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Improving Your Score

How can you improve your credit score?

Changing or improving your credit score after you have decided to buy or refinance a home may be virtually impossible. Here are some tips and strategies to work on that may help you improve your score before you apply for a loan.

  1. Check for accuracy:  Make sure that the information reporting on each of the three credit bureaus is consistent and up to date. Order a free copy of your credit report about once a year, and dispute any inaccuracies.
  2. Pay on time: Late payments work against you. It’s extremely important to pay bills on time, even if it’s only the monthly payment. If you dont have any accounts reporting on your credit, get some.  If the credit agencies dont see on time payments they have nothing to score on.
  3. Keep the balance low: Don’t “max out” your credit lines. Since the size of the balance on your open accounts is a factor, lower balances are better.  The magic number seems to be around 30%.  So if the limit on your credit card is $1,000 NEVER let the balance go over $300.
  4. Clear up judgments & collections: If you have any outstanding judgments they will have to be paid in full prior to closing. Though some collections may not have to be paid off, it is a good idea to clear them up to ensure your score is as high as possible.

I’ve reviewed thousands of credit reports and would be happy to take a peek at yours and give you some personalized tips on increasing the score.*

*Not intended as credit counseling, financial, or investment advice. Contact your financial representative for more information.

 

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Did your mortgage lender suddenly go radio silent, request the same bank statement for the fourth time, or drop a last-minute loan denial right before your scheduled closing date?

Yesterday, a panicked real estate agent called my office from Portage. Their buyer had been under contract for three weeks on a home near Milwood. The closing date sat just nine days away.

Out of nowhere, the buyer’s out-of-state call-center lender issued a denial letter. The call-center underwriter miscalculated self-employment write-offs, panicked over an unpermitted porch repair on the appraisal, and threw the entire transaction into the trash can.

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