Credit Hints:

You are entitled to one free credit report per year. The telephone number to obtain your free credit report is 1-877-322-8228. Suggestion: there are three major credit reporting bureaus (Equifax, Experian, and TransUnion) so consider requesting one and reviewing it; if there are mistakes, then challenge them. Wait at least 45 days and request a report from a 2nd company and make sure the errors have been corrected. You may also request your annual report online at http://annualcreditreport.com. Everything here may seem common sense but you'd be surprised how many people aren't aware of these simple issues:

1. Be sure you make your installment payments on time.   You need a minimum of three trade lines; for example, a car loan, a credit card, and a gas credit card.    Make sure you make your payments on time as payment more than 30 days late will negatively impact on your credit score; plus, any potential mortgage company will look at these late payments as an indicator of your being a bad credit risk.

2. For major credit cards, do not use your entire credit allowance. It will negatively impact your credit score.  If for example you have a $5,000 credit limit and have a $5,000 balance. This does not reflect good credit responsibility.

3. DO NOT make any major purchases from the time you apply for a home loan until you close on the property. I can't tell you how many people sign a contract for a house and then purchases a vehicle. This purchase will increase your debt and decrease the amount of the loan for which you qualify.

4. DO NOT change jobs during the loan process. Financial institutions are looking for a minimum of 24 months of continuous employment.

5. If you have delinquent debts, you will more than likely have to pay these before you will be approved. This is not an all inclusive list, your loan officer/broker will guide and advise you through the credit process.

Remember:  Employment will be verified just before the loan closing.  Your credit will be evaluated again just before the closing.

Please note that I am not a licensed credit counselor and these suggestions are meant as only pointers that should be verified with your mortgage broker.  If you need credit counseling, please visit the South Carolina Department of Consumer Affairs and select a licensed credit counselor.  These individuals are familiar with all the laws affecting credit and credit reporting and their services can be invaluable.  

Please contact me if I may be of assistance.