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Now more than ever it is very important to be sure that your credit score is the highest it can be if you are looking to buy a home or refinance.

The Banks have done away with some of the Creating Financing that was so popular a few years ago and now they expect borrowers to be very disciplined as far as paying their bills on time and accounting for their earnings in order to get financing.  

The higher your credit score, the best interest rate you will get, not only on a home mortgage, but on car loans, credit cards, etc.

Let's take a look at some examples that can help to improve less than perfect credit scores.

If you have a credit score of 655 and a concentration of credit card debt on one card; let's say $15,000 on a card with an $18,000 limit.  At the same time, you have four or five additional credit cards, all with a zero balance.  I would advise you to distribute the balance over a number of your cards.  A borrower's credit to debt ratio represents 30% of their overall score.  By simply changing the ratio of available credit to debt,  in this example you could possible increase your credit score to something closer to 700, saving thousands of dollars on your mortgage.

It is also important not to close any existing credit card accounts, even if they are at a zero balance.  Some people think they are doing themselves a favor by having fewer cards, but they lose out on the credit history factor.  Even if you don't have a good rate on an old credit card, you are rewarded for having the long term credit history, and from time to time you should make a small purchase to keep the account in an active status.

These are just a few things you can do to improve your credit score when considering buying a home.

For more information on what else can be done to get the best rate when looking for a mortgage you can contact me at 813-451-0239

Laura Sanchez, P.A. G.R.I.

Realtor Associate

Markell & Associates Realtors