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Prep tips for home purchasers

Many people who are preparing for a home purchase start thinking about sprucing up their credit. After all, your credit impacts your ability to qualify along with the interest rate you are eligible for on your home loan, which affects the amount of your monthly payment and the overall cost of your mortgage.


• Do NOT close old credit accounts. Many homebuyers like to get their finances in order by paying off credit cards. If you do this, please keep the accounts open. The length of time your credit accounts have been open is an important factor.

• Keep your balances low. The percentage of available credit you use is taken into to consideration when evaluating your credit. Opinions vary, but experts say you’ll help your overall credit profile by using only 10% to 30% of your available credit.

• Avoid new credit inquiries. department store credit cards may save you 10% at purchase, but applying for one will result in an inquiry to your credit. Too many credit inquiries can adversely impact your credit.

• Make your payments on time. Payment history accounts for approximately 35% of your overall credit profile. Even one late payment can have a significant adverse impact.

• Obtain a free copy of your credit report from You may purchase your “credit score” as an option, but please keep in mind these scores can differ from those typically used by creditors. If you find errors on your report, you have the option to dispute inaccurate credit information through the credit bureau. — From GMFS Mortgage

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