Credit scores are a major component in getting approved for a mortgage loan. Maxing out your credit cards can have a major impace on your credit scores.
Yesterday I met with a client who had a $300 limit on a credit card, but had a balance of $275. Becuase of this, the credit scores were 30-50 points less than they could have been if that balance was -0-!
If you, or you have clients that are comptemplating getting approved for a mortgage loan, reveiw your revolving debt and take a look at your limits and balances and see what you can do to get them paid down. Low credit scores can be the difference between qualiyfing for a loan program and defintately on your final interest rate and closing cost.
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