National Get Smart About Credit Day is acknowledged every year on the third Thursday in October. This day has been created by the American Bankers Association to help everyone with building their credit, especially young people.
Colin Kass, Mortgage Loan Officer with Capital Home Loans, has put together a list of items that will assist you with your mortgage journey.
Top items mortgage lenders look for when an applicant is looking to get pre-approved:
- Credit Score: currently anything about a 620 will assist an applicant with qualifying for a Conventional or FHA loan;
- Credit Report: collections accounts (non-medical) and judgments over $2,000 could be required to be paid off before lending;
- Bankruptcies (2-4 years) and foreclosures (4-7 years);
- Monthly payments vs. gross monthly income — debt to income ratio
Colin also recommends the following tips to keep your credit report and score in good shape:
- No late payments — you have up to thirty (30) days before a payment is recorded as late;
- Credit utilization is under 30%
For more information and tips on how to boost your credit, you can check out the American Bankers Association website: https://www.aba.com/