Here are some ways to raise your credit score, but be patient – it may be two to three months before you see the increase…
- Don’t rack up your credit cards
- Maintain 2 lines of credit
- Pay your bills on time
- Get on payment plans for any outstanding collection accounts
For example if you have a $200 car payment, $100 dollars in credit card debts, and your future mortgage payment is going to be $1200, you add them up and they total $1500 in total monthly debt. ($200 + $100 + $1200 = $1500). You only want to include payments that would be on your credit report for this. Payments like an electric bill or car insurance do not get calculated in.
Then say your monthly gross income before taxes and deductions is $5000. To calculate your DTI, you would divide $1500 (your monthly debt) by $5000 (your monthly income). This equals 30%. So that means your DTI is 30%. ($1500/$5000 = .300 or 30%).
- Do not transfer money between your accounts
- Do not open up any new accounts
- Keep in mind that any cash deposit will have to be sourced
- If you sell any personal items and deposit the cash, keep a receipt of the sale
- Do not transfer balances between accounts
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IMPORTANT INFORMATION ABOUT PROCEDURES FOR OBTAINING A NEW MORTGAGE LOAN
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.