Good credit is ESSENTIAL when you are trying to secure a mortgage to buy your home. Here are the first 3 tips for what you should, and shot NOT do when getting your loan:
1) DON'T apply for new credit.
Every time that you have your credit pulled by a potential creditor or lender, you can lose points from your credit score immediately.
2) DON'T pay off collections or charge-offs.
If you want to pay off old accounts, do it through escrow, making sure that the debt is yours. Request a "letter of deletion" from the creditor.
3) DON'T close credit card accounts.
If you close a credit card account, it may appear that your debt ratio has gone up. Closing a card will affect other factors in the score, including credit history.
Stay tuned for more tips to help YOU with getting the best loan possible!
-Daniel Barli, Esq.
http://www.barlilaw.com
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