San Diego Home Mortgage Blog

Its true negative credit items can remain on your credit report for up to 7 years ( up to 10 for public records like bankruptcy, tax liens or judgments). But this doesn’t mean that you should wait for 7-10 years before getting ready to apply for your San Diego home mortgage after one or all of these events. The credit scoring system gives more weight to recent activity than to mistakes that you have made in the past. You can change your habits right now and begin the process of rebuilding your credit to qualify to buy a home in San Diego within 2 years. That’s right you can qualify for a new San Diego home mortgage within 2 years of a foreclosure, bankruptcy or short sale.

Here are a few Dos and Don’ts when it comes to rebuilding your credit to qualify for a San Diego Home Mortgage:

1) After foreclosure, bankruptcy or short sale open 2 new credit cards to use exclusively to rebuild a stable credit history. You might be asking yourself how you can get a credit card after such a big hit to your credit, the answer is simple GET A SECURED CARD. Secured credit cards use a savings account as collateral for the credit being extended. The cards should be opened with $500 and over the next 2 years it should be a goal to get them up to a credit limit of $2000. The trick with these new cards is to use the m every month for only five or ten dollars and pay the full balance every month. Some of these cards have an annual fee that will be charged to you with the first bill, if this is the case with yours pay the fee off over the first 3 months and then start using it.

2) If you still have credit cards with perfect credit history’s do not close them and make sure to ask us before closing any cards. Continue to use the cards with perfect history because the older an account is with perfect the more influence it will have in making your score recover. To make sure that your credit score is getting the maximum benefit from the accounts and that they won't hold you back when it comes to getting your San Diego home mortgage be sure to keep your balance UNDER 30% of the credit line.

3) Three months before applying for your San Diego home mortgage Do Not apply for credit, close accounts or payoff any collections, charge offs, loans or any other credit. Doing any of these things could make your FICO score drop when you need your score to be the highest, right before you apply for your San Diego home mortgage.

4) Do monitor your credit. Ask us to refer you to a professional credit repair company that you can trust. Having an experienced professional on your side will keep you on track for your new home and give you a specific plan to follow to get your San Diego home mortgage.

Give us a call today. We will be glad to review your credit to see what, if anything needs to be done for you to get the best San Diego home mortgage. Make sure to check for more credit tips and tricks.

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