First Lending Solutions Gives You Advice on Home Loans

Advertorial supplement: First Lending Solutions is in the business of finding you the best mortgage for your individual needs. In doing ...

Advertorial supplement:

First Lending Solutions is in the business of finding you the best mortgage for your individual needs. In doing so, they will help you identify the "do's" and "don't's" of credit maintenance during the home loan process. Here are some tips from mortgage specialist Pamela Witt:

1. DON’T APPLY FOR NEW CREDIT OF ANY KIND...
Including those "You have been pre-approved" credit card invitations you receive in the mail. Every time you have your credit pulled by a potential creditor or lender, you lose points from your credit score immediately.

2. DON’T PAY OFF COLLECTIONS OR CHARGE OFFS...
During the loan process. Paying collections will decrease the credit score immediately due to the date of last activity becoming recent. If you want to pay off old accounts, do it through escrow.

3. DON’T CLOSE CREDIT CARD ACCOUNTS.
If you close a credit card account, it will appear to the FICO that your debt ratio has done up.

4. DON’T MAX OUT OR OVERCHARGE ON YOUR CREDIT CARD ACCOUNTS.
This is the fastest way to bring your score down 50-100 points immediately. Try to keep your credit card balances below 30 percent of their available limit at all times during the loan process.

5. DON’T CONSOLIDATE YOUR DEBT ONTO 1 OR 2 CREDIT CARDS.
It seems like it would be the smart thing to do, however, when you consolidate all of your debt onto one card, it appears that you are maxed out on that card, and the system will penalize you as mentioned in 4.

6. DON’T DO ANYTHING THAT WILL CAUSE A RED FLAG TO BE RAISED BY THE SCORING SYSTEM.
This would include adding a new account, co-signing on a loan, changing your name or address with the bureaus. The less activity on your reports during the loan process, the better.

7. DON’T WRITE CHECKS IF YOU HAVE NO FUNDS AVAILABLE IN YOUR CHECKING ACOUNT.
This is treated as a negative in your credit report, and you may have to prove you have NSF (no sufficient funds) in the prior 2 or 3 months before you get a home loan.

8. DO JOIN A CREDIT WATCH PROGRAM.
If you join a credit watch program, you can check your reports weekly, or even daily depending on the program you select. When you pull your own reports, you don’t get dinged for a hard inquiry.

9. DO STAY CURRENT ON EXISTING ACCOUNTS...
Like your mortgage and car payments. One 30-day late can cost you anywhere from 30-75 points.

10. DO CONTINUE TO USE YOUR CREDIT AS NORMAL.
Red Flags are raised easily with the scoring system. If it appears that you are changing your pattern, it will raise a red flag, and your score could do down.

11. DO CALL YOUR BROKER...
If you receive something in the mail from a creditor or collection agency that you believe may affect your score during the loan process. Your broker may be able to supply you with the resources you need to stop any derogatory reporting to the bureaus.

12. DO CALL YOUR AGENT AND OR LENDER...
If you are contemplating a job or career change. Switching jobs or careers can change your loan approval to a loan declination. Do not move large or abnormal amounts of money through your bank accounts.

First Lending Solutions
6370 Magnolia Ave #350
Riverside Ca 92506

Website: First Lending Solutions
Phone: 858-518-1506

CA. Dept. Real Estate License No. 01499871 / NMLS I.D. 314276
First Lending Solutions has been in business for over 10 years.

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First Lending Solutions 8158155757160206401

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