Want to buy a home…..

…here’s a few things you can do to protect your credit score and enhance your ability to get a home loan.

1) Pay your bills on time. If you pay your bills late, your credit score is affected. The best way to enhance your credit score is to pay all bills when they are due.

2) Avoid numerous credit inquiries to your credit. Remember when you were at the mall recently and the clerk at your favorite store asked if you’d like to open a charge account? If you agreed and filled out that credit application form, it created a credit inquiry on your credit report. Applying for a new credit card or for a new car loan does the same thing. So when you’re planning to purchase a new home, put off any purchase that requires financing.

3) Don’t take on additional debt. When a lender is figuring how much they will lend you for your home purchase, they calculate your “debt-to-earnings” ratio - the amount of money you owe compared to how much you earn. The higher your ratio, the less you’ll be able to borrow. So, as in #2, put off any purchase that requires financing.

4) Got a bunch of credit cards and think that if you get rid of some of them, you’ll improve your credit? Not always so. In fact, it may harm your credit score. Before you close credit card accounts, consider the length of time you’ve had the card because longevity and payment history are used to help determine your score.

I always recommend home buyers work with a lending professional when planning to purchase a home. The lender can help you make decisions about your credit that will improve your credit score and, if you have any blemishes on your account, they can help you determine what line of action to take to best overcome the problem.