Build Your Credit

When you become serious about getting approved for a home mortgage, it is imperative that your credit report is accurate. As a consumer, your credit score speaks volumes and is one of the strongest guiding factors in a lender’s decision to approve or deny your home loan request.

The first thing I do is ask you about your credit experience, and talk to you about your credit before asking to pull the tri-merge report, which includes all three relevant credit reports.

The big three credit bureaus, Experian, Trans-Union, Equifax, provide scoring from the range of 350 – 850.

Credit score factors are:

  • Payment History

Consistently paying debt on time and in full has positive impacts. Late payments, charge-offs, collections, and judgments against your name will have a negative impact.

  • Outstanding Credit Balance

Know what your line limit is on each consumer plastic credit card you have been given the privilege of using.   Keep up with the balance of your cards and do your very best never to use more than 30.00% of the available credit line.

When you get up into the 50.00% of the line, do your best to pay it down quickly. In other words do your best to keep your ratio of credit used down below 50.00% of the available line limit. Do not close a credit account you have unless you believe it is absolutely necessary.   Once you close a credit line, this good history will no longer be a part of your credit scoring and may decrease your credit score for a while.   It is smart to evenly distribute your debt among the open credit you have in order to stay at or below 30.00% of each credit card line limit.   Hitting the maximums of your available line limits can create a negative situation when it comes to your scoring with the three major credit bureaus.

  • Credit History

All lenders today look at a seasoned borrower as one who has exhibited healthy credit habits for the last 24 months and well beyond.   Length of time a credit line has been opened is very important in the overall scoring.

  • Type of Credit

A good mix of credit speaks volumes about one’s ability to manage debt. A mixture such as an auto loan, two or three credit cards, one student loan, and a home loan is a good Layering of debt, rather than just credit cards.

  • Inquiries

The maximum number of inquiries which may reduce your scoring is 10 within a six month period. While shopping automobile loan inquiries and home loan inquiries receive less stringent treatment and up to 10 inquiries may be made within a 14 day period, which will be treated as only one inquiry. So be mindful when shopping and keep the inquiries within a 14 day window, in order for your credit not to be negatively impacted.

Get a free copy of your credit report at

*EQUIFAX, P.O. BOX 740241, Atlanta, GA 30374-0241; (800) 685-1111

*EXPERIAN (formerly TRW), P.O. BOX 2002, Allen, TX 75013; (888) 397-3742

*TRANS UNION, P.O. BOX 1000, Chester, PA 19022; (800) 916-8800

Leanna Wooten, Team Leader/Senior Lending Officer

Texas NMLS #38994 / Oklahoma #MLO12743 / Union Home Mortgage NMLS #2229

6217 Chapel Hill Blvd., Suite 100; Plano, TX   75093

Cell: 214-551-0809   / Office: 469-640-6077