Mortgage Tips: Your Current Mortgage and Shopping for a New One
For those with a current mortgage on their home, keep these tips in mind.
- If possible, pay off the entire balance every month: Transferring credit card debt from one card to another could lower your score.
- Don’t charge your credit cards to the max: Pay down as much as you can every month.
For those preparing to buy a home, keep these tips in mind.
- Wait 12 months after credit difficulties to apply for a mortgage: You’re penalized less severely for problems after a year.
- Don’t order items for your new home on credit: Wait until after your home loan is approved to charge appliances and furniture, as that will add to your debt.
- Don’t open new credit card accounts: If you’re applying for a mortgage, having too much available credit can lower your score.
- Shop for mortgage rates all at once: Having too many credit applications can lower your score. However, multiple inquiries about your credit score from the same type of lender are counted as one if submitted over a short period of time.
- Avoid finance companies: Even if you pay off their loan on time, the interest is high and it may be considered a sign of poor credit management.
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