You made the decision to buy your own home. You think you are ready and prepared because you have saved for a significant period the accumulation of down payments and necessary reserves. However, if you are like many others, you probably will not have focused enough on the effects and impacts of your credit cards to get the best possible mortgage terms or, in some cases, how certain factors could make obtaining a mortgage much more difficult than necessary. None of us appreciate the added stress and hassle, so this article will review and briefly review 4 examples of credit card management factors. wisely.
1. Balances on your credit cards: Credit institutions consider many economic factors, including credit card balances, which also affect your personal credit score. Ideally, they want to see, you use, less than half of your available balance. Several months before applying for a mortgage, be sure to reduce your balances and improve the relationship between available and used balances.
2 Number of accounts / cards: Most credit institutions and rating agencies wish to have about 4 to 6 accounts. Each of these must be, in accordance with the sales discussion, discussed above.
3 Debt: Examine carefully and examine the relationship between your credit card balances, added to other personal and / or consumer loans, such as car payments, lines of credit, etc., relative to your income. Mortgage lenders have strict requirements, both for the ratio of mortgage debt, income, as well as total debt and income. Unless you meet the requirements in both areas, conventional mortgages can be extremely difficult and difficult to realize and receive. Another problem is to take into account your personal comfort zone and how credit card debt and monthly payments can create additional stress and trouble.
4 Recent open accounts: If you are thinking of buying a home in the not too distant future, it is essential to avoid adding an extra debt to your existing debts. For more than 10 years, as a licensed real estate salesman in New York State, I have witnessed, all too often, cases where people have injured and / or destroyed their chances and / or opportunities in accepting certain credit card offers, because of some perceived benefits. For example, when you buy something in a retail store, resist opening a credit card, because that store could have negative consequences in the short term.
Savvy consumers are prepared to make their purchase, experience, fluidity and efficiency. Manage your credit card accounts wisely and get ready!