If you’re thinking about buying a home or shopping for one right now, having the best credit score possible is in your best interest. To get you a lower score (which will get you a lower mortgage rate), here are the tips you should follow:

1. Check for any errors on your credit report. You can check it on annualcreditreport.com once a year for free. We see errors all the time on people’s reports. That can bring your credit score down.

2. Pay down your credit card bills as much as possible. If you can pay your debts off completely, that’s ideal. However, if you can pay it down by 30% or even 50%, you will be in much better shape

3. Never max out your credit cards. Doing so will always cause your score to drop

4. Wait 12 months to purchase after having credit issues. You want to have a clean, solid credit history for at least one year so that your score will start to go up again.

5. Shop for your mortgage interest rates at the same time. Ideally, you want to shop around to get the best rate. However, you need to do it in the same 30-day span. You will have to pull your credit for each lender, but if you’re shopping for the same type of mortgage in the same month, it will count as just one inquiry. This will bring your score down, but not by much.

“Never max out your credit card.”

I hope this information helps you if you have any questions about buying or selling a home. If you have any questions for me, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.