Brenda Kellen: Five more credit do’s and don’t for home buyers
Thoughts on Real Estate
Last week, I discussed five credit do’s and don’t. This week, I will finish out my list of 10 by going over the last five.
Credit scores, more than ever, are driving buyer’s interest rates and program availability so keeping your credit as strong as possible is a high priority.
6. DON’T DO ANYTHING THAT WILL CAUSE A RED FLAG TO BE RAISED BY THE SCORING SYSTEM. This would include adding new accounts, co-signing on a loan, changing your name or address with the bureaus. The less activity on your reports during the loan process the better.
7. DO JOIN A CREDIT WATCH PROGRAM. If you join a credit watch program, you can check your reports weekly, or even daily depending on the program you select. (When you pull your own reports, you don’t get dinged for a hard inquiry.) This way, if something does show up on your reports that has caused your score to go down, you’ll know immediately, and you may be able to take care of the problem before closing.
8. DO STAY CURRENT ON EXISTING ACCOUNTS, such as your mortgage and car payments. One 30-day late can cost you anywhere from 30 to 75 points.
9. DO CONTINUE TO USE YOUR CREDIT AS NORMAL. Red Flags are raised easily with the scoring system. If it appears that you are changing your pattern, it will raise a red flag and your score could go down.
10. DO CALL YOUR BROKER if you receive something in the mail from a creditor or collection agency that you believe may affect your score during the loan process. Your broker may be able to supply you with the resources you need to stop any derogatory reporting to the bureaus.
Brenda Kellen has been selling for over 10 years with Omni Real Estate and helps buyers and sellers in both Grand and Summit County. If you have questions/comments or need assistance, please e-mail firstname.lastname@example.org or call (970) 485-1115.
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