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Three Keys to Perfect Credit

These days it is almost impossible to get the best home loan without the best credit. During the “sub-prime” boom it was possible to achieve high balance financing with low credit scores if you had the right income and assets. During that time borrowers simply paid a higher interest rate to “offset the risk”. In today’s economy and lending environment, however, the industry has returned to more common sense lending practices. As a result having the best credit score and history possible is key to achieving the best home loans available at the best interest rate.

Key Number One

Have open credit with activity on it. The older the credit line and the better the activity on it the higher your score. New credit lines can temporarily lower your score until the reporting agencies see that you are going to manage your credit well. There are some offers in consumer lending which require the credit line to be at least 15 years old or older to qualify for the offer. This is generally for extremely low rate or high balance/high reward credit cards. So Key Number One is to actually have credit that has always been paid on time and is used regularly.

Tips for great credit for Georgia mortgages

Key Number Two

One of the best ways to tank your credit score and history is to make a late payment. Even a late payment on an auto or credit card can adversely impact your credit score and history enough to eliminate you from qualification for the best home loans. Some loans require there to have not been a late payment on any consumer credit in the last 12 to 24 months and most require no home mortgage late payments in the last 12 to 24 months. So Key Number Two is never pay late. By never I mean never.

Key Number Three

Keep your loan balances low. Paying a loan off, believe it or not, may have less of a positive effect than keeping your loan for the duration but paying it down quickly. With credit cards keeping a very minimal balance is key to increasing scores. For example if you have a credit card with a $5,000 limit and your outstanding balance is $4,900 this can hold your scores down. Conversely if you have a $100 balance on that same card you will notice an up trend in your scores. Likewise with car loans and other types of credit. Paying them off and closing them is not usually as good as paying them down and keeping them open. So Key Number Three is low balance to loan amount or credit line amount.

If You Have Questions

If you have questions about getting the best home loan to purchase or refinance a home loan in Georgia don’t hesitate to contact me. My office is in Marietta near the intersection of Windy Hill and Power’s Ferry so if you want to come by to discuss your situation and opportunities feel free to contact me to schedule an appointment. The coffee or soft drinks are on me! I specialize in Cobb County luxury home financing as well as any home for primary residence or real estate investment purchase or refinance in the north metropolitan Atlanta area of Cobb, Cherokee, Fulton, Paulding and Gwinnett.

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I am a multi-year veteran of the industry who has served in the highest offices in the industry. I can help you get the best deals and avoid getting ripped off!
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