Maybe you have been considering buying a home but are concerned that your credit scores are less than steller. When you apply for a loan, you credit scores along with your debt to income ratios are going to be big factors. Here are some tips that can help you improve your credit scores and help you in advance.
1. Run your own credit report so you know in advance what the lender is going to find. This will give you the opportunity to correct any mistakes and possibly remedy any derrogatory items.
2. Don't charge your credit cards to the maximum.
3. Pay down the credit cards to improve your debt to income ratio.
4. Pay your bills on time, all the time. Show your credit worthiness.
5. Don't play the shell game by transfering balances from one card to another. This can lower your scores.
6. Don't open new credit card accounts before applying for a loan. Having too much credit available to use can scare the lenders.
7. Don't charge big ticket items for your new house when you are in escrow. This can throw off your debt to income ratio. The lenders may run your credit again right before you close escrow. Wait until you close to by the new furniture!
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