Credit Tips – Managing Credit During the Loan Process

Dale McDermott

Good credit is critical when it comes to getting the best interest rates and terms on a mortgage.

Here are some credit tips when looking for a mortgage.

— Dale McDermot

Vice President, Mortgage Lending
TheBANK of Edwardsville

Stay Current On Existing Accounts – Just one late notice can cost you.

Continue To Use Your Credit As Normal – Changing your pattern will raise a red flag and lower your credit score.

Call the Mortgage Professional Below – before making any address or credit changes.

Don’t Apply For New Credit – Every time you have your credit pulled by a potential creditor or lender, you can lose points from your credit score. This includes co-signing for a loan.

Don’t Close Credit Card Accounts – If you close a credit card account, it may appear that your debt ratio has gone up. Closing a card will affect other factors in the score, including credit history.

Avoid Paying-off Collections or “Charge-Offs” – If you want to pay off old accounts, do it through escrow. Request a “letter of deletion” from the creditor.

Don’t Max Out Credit Cards – Try to keep your credit card balances 30% below their limit during the loan process. If you pay down balances, do it across the board.

Don’t Consolidate Your Debt – When you consolidate all of your debt into one or two credit cards, it will appear that you are “maxed out” on that card and you will be penalized.

  • Dale McDermott
    • Vice President,

    • Mortgage Lending
  • TheBANK of Edwardsville

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