Financing - Important Tips For Managing Your Credit Score

Financing and Your Credit Score

Credit is an important component in helping you find the best loan product to meet your home-buying needs. The way you handle credit obligations can greatly affect your loan choices and the interest rates you can get. In short, the better your credit, the more loan options you will have when choosing what’s best for you and your financial goals.

If you're in the market to buy a home, and you want to make sure you're doing everything you can to maintain good credit, here are a few tips:

  • DO pay what you owe – regularly and on time.
  • DON'T skip payments.
  • DO have a checking and a savings account.
  • DON'T hold more than four credit cards.
  • DO sign up for automatic payroll deposit with your employer.
  • DO keep your total debt-to-income ratio under 36 percent. 
  • DON'T exceed or continually increase your line of credit.
  • DO keep track of your spending and stay within your budget.
  • DON’T continually open and close accounts; maintain a constant profile.

Your lender will view your credit report when determining which loan products are best for you. Using your credit history, the credit bureau will develop a credit score. The higher your credit score, the more likely you are to qualify for a loan with the best interest rates and product features.

Not sure where you stand?
It's wise to obtain a copy of your credit report at least once a year in order to find your FICO score. You can obtain your report for free once a year from each of the three major credit bureaus at 
www.annualcreditreport.com. It’s especially important to figure your score before making a large purchase, like a house or a car, in order to review for accuracy and find out how you can work on improving it, if necessary. 

 In that report, you'll see the consumer credit given to you over the past seven years and be able to check your highest balance and current balance on outstanding debt, as well as see details about on-time and late payments and collections. Your home mortgage consultant should be able to help you better understand what your score means.  

You can get your credit report from many sources, but should you find something in your report that may be inaccurate, only the credit agencies can actually correct the data on your report. Contact the three major credit agencies directly: 

Equifax: (800) 685-1111 or www.equifax.com 
Experian: (888) 397-3742 or 
www.experian.com 
TransUnion: (800) 916-8800 or 
www.transunion.com

As for less-than-perfect credit, you should know that lenders typically are more concerned with how you’ve handled your recent credit than with what happened years ago. But even if you have a blemish on your credit history, don't let that stop you from buying a home. Buying a home – and paying your mortgage on time each month – is a great way to rebuild your credit.

For this and more information call your Dallas Realtor Lisa Von Domek, and visit www.LisaSellsTexas.com!

 

 

www.LisaSellsTexas.com

 

Lisa Von Domek

 

Lisa Von Domek
BROKER/ASSOCIATE/REALTOR, 
ABR, AHWD, ALHS, ASP, BPOR, CAPS, CDPE, CGP,
CLHMS, CMS, CRS, CSP, e-PRO, GREEN, GRI, MRP, PS, QSC, SFR, SRES, TAHS, TRC
Lisa Von Domek & Associates, LLC / Real Living Real Estate Group 
Phone:      972-849-1300 
Email:        Lisa@LisaVon.com      
Website:   www.LisaVon.com

Multi-Million Dollar Consultant

Texas Licensed Real Estate Broker

 Accredited Buyers RepresentativeAccredited Staging ProfessionalAt Home With DiversityCertified Residential Specialist  Certified Aging-in-Place SpecialistGraduate Realtor Institute      Certified Distressed Property Expert  e-ProSenior Real Estate Specialist      GREEN Realtor             Military Relocation ProfessionalShort Sale and Foreclosure CertifiedTexas Affordable HousingTransnational Referral Certified       Institute for Luxury Marketing        Certified Luxury Home Marketing Specialist  ALHS  AR Top Contributor     Wounded Warrior Project

 

 

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Dallas TX Real Estate  DeSoto TX Real Estate  Duncanville TX Real Estate  Grand Prairie TX Real Estate Midlothian TX Real Estate Plano TX Real Estate  Red Oak TX Real Estate  Waxahachie TX Real Estate

 

 

Lisa

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Comment balloon 27 commentsLisa Von Domek • August 25 2015 05:59PM

Comments

Lisa, great tips.  It's always nice when someone is financially wise and lives smart when it comes to credit.

Posted by Bob Haywood, BobHaywood.com (McGraw Realtors) about 4 years ago

Wifes often have better credit scores than husbands. Many of the late payments are from fighting off a unjustifed transaction.

Most wifes go pay the bills but men want to fight the credit system.

Posted by Sam Shueh, mba, cdpe, reopro, pe ( (408) 425-1601) about 4 years ago

These are great tips Lisa Von Domek .....we all should pass these on to our clients!

Have a great day!

Posted by Rob Thomas, Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro (Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954) about 4 years ago

Lisa Von Domek,  These are great tips on how to improve greater scores, thanks.

Posted by Sybil Campbell, REALTOR® ABR, SFR, SRES Williamsburg, Virginia (Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia) about 4 years ago

For pepole who seem to have trouble with dates and  payments...we suggest accountability partners...scheduled withdrawals....calendar "spotting" with due dates...

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) about 4 years ago

Good morning Lisa. Some very good tips and important for all of us, but especially for those planning on purchasing a home in the near future.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) about 4 years ago

Hi Lisa.  

  • DO pay what you owe – regularly and on time.   Your no fun
Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) about 4 years ago

Lisa, it pays to establish and keep good credit! Enjoy your day! 

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) about 4 years ago

Hello Bob Haywood 

Thank you - taking care of one's credit makes life easier all the way around.

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 4 years ago

Hello Sam Shueh 

Don't let husbands see your comment, they may protest! 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 4 years ago

Hello Rob Thomas 

Please pass these tips along!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 4 years ago

Good morning Lisa. This is a thorough and thoughtful list and should be a handout. Well done.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) about 4 years ago

Hello Sybil Campbell 

Thank you - please feel free to share this information!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 4 years ago

Hello Sally K. & David L. Hanson 

Great suggestions - reminders and accountability partners will help alleviate missed payment dates.

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 4 years ago

Hello Joe Petrowsky

Thank you.  Good credit is a must for a home purchase, it can save a hopeful home buyer from disappointment.

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 4 years ago

Hello Conrad Allen 

I know, I am just an old rule watcher...pay what you owe, regularly and on time ...what a concept! 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 4 years ago

Hello Wayne Martin 

The paybacks for good credit are enormous!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 4 years ago

Hello Sheila Anderson 

Thank you - great suggestion and I agree! 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 4 years ago

Especially for the US government

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) about 4 years ago

Lisa, great reminder to potential buyers about their credit.  It is important to take extra care, as the FICO score is important not only to buy a home, but insurance too. 

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) about 4 years ago

Lisa

Your tips will help a buyer qualify for mortgage.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 4 years ago

Lisa having good credit is very important in everything these days even in obtaining a job sometimes, and credit cards play a major roll in whether someone has good credit or not.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) about 4 years ago

Excellent advice on your FICA score Lisa. SO very important.

Posted by Noah Seidenberg, Chicagoland and Suburbs (800) 858-7917 (Coldwell Banker) about 4 years ago

Hi Lisa.  Great tips, though sometimes I wonder if anyone is listening!  

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) about 4 years ago

Great information that can't be stressed enough, and repeated.  I am working hard to ensure my 22 yr old son stays focused on building and maintaining his credit score.  He just bought a new car and realized that  with good credit score and one third down payment he got  a great interest rate.  Hopefully when he is ready to buy a house he will find his diligence will have rewards!

Posted by Shirley Coomer, Realtor, Keller Williams Realty, Phoenix Az (Keller Williams Realty Sonoran Living) about 4 years ago

Great Article!  I will begin to use this with my buyers AND sellers!

Posted by Kim Norton, Selling Northwest Arkansas (CREATIV Real Estate Solutions) about 4 years ago

Lisa

I would that people bookmark our post to go back and reference.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) about 4 years ago

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