Now, more than ever, credit scores can make a dramatic difference in the interest rate or Closing Costs a borrower will receive. For those looking for a conforming loan issued through Fannie Mae or Freddy Mac, there are hard costs build in to the loan programs that banks issue. These costs can be significant even for those that have less than excellent credit scores. For those seeking a Seattle home mortgage, I am available for free individual consultation to improve your credit profile. Here are some general suggestions:

1. Keep revolving credit balances below 30% of the credit limit. These accounts are credit card accounts and Home Equity Line of Credit loans. This does not apply to fixed rate second mortgages.
2. Do not allow any payments to go past 30 days late. If payments go 60 and 90 days late the penalties will get worse.
3. Do not allow any accounts to go to collections. Make sure you address any disputes with creditors before they send them to collections. In the world of credit you are guilty until proven innocent. A creditor can send and account to collections with little warning and this will significantly impact your scores.
4. Do not pay off any collection accounts unless they are very recent. Paying off older collection accounts can actually lower your scores. This is only applicable if you are trying to obtain credit in the near future. Collections stay on your record for 7 years but their affect goes down over time.
5. Do not apply for new credit accounts if you plan to apply for a home loan. New credit inquiries can lower your scores.
6. Do not allow more than one Mortgage Company to pull your credit out side of a 30 day window. This can lower your scores. If done in a narrow time frame, multiple pulls by the same kind of companies will not hurt your scores.
7. Do not close credit accounts. Having a wide profile of credit accounts can help your scores. Too many accounts can be a problem as well. An individual analysis of your situation will be beneficial.
8. Do not co-sign for credit accounts. These accounts can work against your ability to qualify for a loan.

If you have incorrect information on your record, contact me for a free Credit Repair Kit.