7 Ways To Protect Your Credit Score For Better Mortgage Rates
As mortgage lenders tighten approval standards in Indiana and nationwide, the importance of a good credit score is rising. Credit scores not only make the difference between a mortgage approval and mortgage turn-down, but they also play a large role in determining your actual mortgage note rate.
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In the 3-minute piece, the NBC Today Show talks about 7 ways that homebuyers ruin their credit -- often by accident. Some of the highlighted mistakes include:
- Closing open credit cards
- Making appliance buys on credit prior to closing
- Asking creditors to lower credit balances prior to closing
In general, a 740 FICO will insulate a borrower from the higher costs and/or rates associated with low credit scores. Below 740, though, every 20 points adds to the damage. Watch the video and apply what you can to your own situation. The more you know, the more you can save.
Sometimes a short and sweet talk about an important area like this is the best solution. In Massachusetts we get free credit reports each year, so I am amazed when I hear people have not done it. The scores cost you additionally, but always fun to have for a small fee.
Links to the major credit agencies is also a great tool to have in the next posting on credit scoring. Maybe intice one of those home buyers to check out their score prior to calling you!
Ed - Thanks for the great ideas! I'm also amazed at the amount of people who do not get their free credit report annually.
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