Oh, the perplexing world of credit. I must confess that there are times that the rules of what raises and lowers your credit score baffles me. The one thing I am certain of is that you should guard your credit score with righteous fervor, at least until you win the lottery and can afford to buy everything with cash. Your credit is part of your buying power. This active guardianship is even more important once you are in the process of buying a home.
Leading nationwide credit expert and President of Credit Resource Corporation, Linda Ferrari, developed the top 10 credit "don'ts" during the loan process, to help you get your arms around those things that can unknowingly wreak havoc on your loan transaction.
1. Don't do anything that will cause a red flag to be raised by the scoring system
2. Don't apply for new credit of any kind
3. Don't pay off collections or charge offs
4. Don't max out or over charge on your credit card accounts
5. Don't consolidate your debt onto 1 or 2 credit cards
6. Don't close credit card accounts
7. Don't pay late
8. Don't allow any accounts to run past due-even one day!
9. Don't dispute anything on your credit report
10. Don't lose contact with your mortgage and real estate professionals
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If you have a home anywhere in the Charleston Metro Area and would like to get more information about selling your home, please contact me for a free home evaluation.
I also work with buyers. If you are interested in more information about buying a home please contact me and I would be glad to meet with you or email you a list of homes.
Michael J. Johnson, Realtor, ABR
843-817-5299
michaeljohnson@carolinaone.com
"Providing the Light to Guide You Home"
Don't buy your furniture and furnishings on credit until after the loan has closed! Your credit report will be pulled just before closing to make sure there are no surprises the underwriter should be concerned about. Good list of credit "don'ts."
sounds like that has happened to one of your client's Rick. ;-)
I agree with the above. I moved last October and the day before we closed my credit alert showed a credit check was done. I believe they should have been doing this all along.
Great list ! I'm gonna share it with my newer team members ! Thanks!
7a. Don't save money for your SETTLEMENT FUNDS by not paying your bills until closing. That is one of my nightmare transaction scenarios. Agents should be very diligent about setting expectations with their clients. What should they be doing? What should they NOT be doing. It will save everyone from experiencing unnecessary frustration and disappointment.
GREAT POST MICHAEL!