credit score

What’s the best way to raise my credit score when applying for a mortgage?

Oct 10th, 2012
by edsmith.
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Improving your credit (FICO) score quickly can be akin to turning a battleship on a dime. It can be difficult. The time to begin credit score management is months before you make loan application.

However, a good loan officer can help you get “re-scored” based on errors and certain changes, but generally speaking, paying your bills on time and keeping outstanding debt levels low are the key items considered in determining your overall credit score. And, do not close accounts that you’ve successfully paid off. Available unused credit is good for your score as well!

For more on this topic or for a list of great local loan officers, please email us at smith@realtor.com

Is a deed-in-lieu of foreclosure better on your credit score than a regular foreclosure?

Dec 18th, 2008
by edsmith.
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Not really. According to local mortgage originators, your credit score will be lowered by approximately 280 points either way. A deed-in-lieu of foreclosure can be a better option because the agreement will typically stipulate that the bank will not seek a deficiency judgment against you. That is not true of a “regular” foreclosure, in which case a judgment can be obtained against you. According to our attorney, a default judgment against you in Florida can be kept alive forup to 20 years!