Mortgage Watch

As mortgage professionals, we feel it is of the utmost importance to inform our customers
as to the significance of their credit standing and how it affects their capacity to obtain a
mortgage and, even worst, affects the cost of borrowing, especially in these uncertain
economic times. Making some of the following mistakes can ensure that lenders will put on
a hazmat suit to handle your credit report.



Remember the good old days, way back in 2007, when the streets were paved with Credit-
Gold as far as the eye could see and credit cards rained from the sky? Even the credit-
destitute were treated like kings by credit card companies and courted with lavish offers of
unlimited credit.

Here, in the future, the world has changed. And woe betides those who ask for loans with
glaring blemishes on their credit reports. An unpaid collection is apt to be regarded like a
cockroach in the consommé.


What affects your credit score and in what proportion?

35% - Your paying habit
30% - Amounts owed
15% - Lenght of credit history
10% - New credit
10% - Types of credit used

The Seven Pitfalls to Avoid

1. Close credit card accounts
2. Let credit cards collect dust
3. Run up high balances
4. Apply for new credit repeatedly
5. Don’t pay fine on non-credit-card bills
6. Ignore mistakes on your credit report
7. Make late payments or skip them all together

SO, WHAT TO DO?

• Close credit card accounts

• Do not let credit cards collect dust