How to improve your credit

I get calls everyday from potential buyers asking me to check their credit. What lenders are looking for in a credit profile has changed and the word is not really out. A lender is looking for at least 3 active credit tradelines that have been open for at least 12 months.

For a little while we heard close your credit cards you aren't using. Well now that is not the case. Even if you rarely use a store credit card it is probably better to just leave it open showing that you have good credit with that store. The other major change is never use more than 30% of the credit limit that you do have with a charge. That means if you have a 1000.00 credit limit don't charge more than 300.00 and then pay the balance in full every month.

This week recap

Well here we are two weeks into 2010. Interest rates are moderating under 5.00% for the A+ borrowers. Both Fannie and Freddie are working on changes to guidelines further tightening the lending restrictions. FHA is also expected to raise the downpayment requirements and most likely the mortgage insurance rates.

If you have a buyer who is thinking of buying before the 8,000 tax credit expires the end of April I would suggest buying soon. The downpayment might go up from 3.5% to 5%. That is significant for first time buyers.

Call or email me anytime and I will pre approve your buyer in a few minutes.

Enjoy the nice weather.