So many people want to qualify for a mortgage but they sabotage their credit rating without even realizing what they are doing wrong. Here are a few tips on what not to do if you are applying for a mortgage.

1. Cancel your credit cards. Yes, pay off the balances but don’t cancel the card. Mortgage lenders are interested in how much credit you have available. Keep your credit card balances under 30% of your approved credit level.

2. Not checking all three credit reports and your FICO score. This is a big one folks. It is so important to check all three of your credit reports so you can correct errors.

3. Buy furniture for the house. Whatever you do if you qualify for a loan make no major purchases until after the closing. Then you can celebrate the closing by visiting your favorite store or car dealership if you wish.

4. Spend over 30 days shopping for a mortgage. Your credit rating loses 5 points every time a creditor checks your credit rating after the 30 day period. Most of us can’t afford to lose any points.

5. Ask your creditor to lower your credit level. People do this in an effort to help themselves spend less on credit cards. A mortgage officer is looking at your “available” credit when considering approval. Control yourself and get your spending under control.

6. Use one credit card to pay off another. Mortgage lenders believe this to be a trick. Don’t do it. Pay off the credit card with the highest interest first and then get your other balances to under 30% of your credit availability.

Here’s what you can do to help yourself get a mortgage loan:

1. Pay your bills on time.

2. Keep your credit card balances under 30% of the approved credit level.

3. If you have one late payment when you have always been on time before ask the creditor to remove the mark against your credit. It is worth talking the time to ask. Most will remove it if you are a good payer.

Unless you have the cash you are going to have to get a mortgage loan to buy a home. Follow these rules and get your financial life back under your control.  When you’re ready to buy a home then call and I will help you get into the home of your dreams. You can reach me at 402-964-4251 or email me at Marie.Otis@cbshome.com.