*Get a secured credit card: These cards build credit but are pre-paid. If paid on time, this will help re-establish the credit and credit score.
*Never seek out consumer counseling services, especially while in the process of applying for a home mortgage loan: This tells the credit bureaus that you cannot pay your bills and could negatively affect your credit.
*Demand negative credit that is 7 years old or older be removed from your credit report: The only item that will stay on your credit score for more than 7 years is chapter 7 bankruptcy.
*Have a good mix of credit accounts, credit cards, bank loans and finance companies: Open new accounts at least 6 months before applying for mortgage loans to avoid lowering credit scores.
*Have a lengthy credit history: Establish credit early and pay timely to build excellent credit.
*Your credit score does NOT go down when you check your credit or a bank does a credit scan on you.
*Instead of letting a relative help you buy a home, let them help you wipe out debt: They can help you improve your credit score and save you money in the long run!
*Another way relatives can help: They can provide gifts to help buy down the mortgage rate, either temporarily or permanently. For example, a gift of $5,000 to buy the interest rate down would lower the interest rate by about 1% for the entire length of the mortgage, for each $100,000 of loan amount.
*Relatives can act as co-borrowers for people with less-than-perfect credit scores. This will allow for better loan terms.
No comments:
Post a Comment