Copy
Guiding You Home
• August 2020 Issue •

 
Hi Friends,

In today's current climate, we know that it's more important than ever to have a home you love spending time in. Whether you're currently setting your sights on buying a home, have just settled into a new rental, or want to learn the ins and outs of what to expect in the real estate world, we're here to share our knowledge with you. In this month's newsletter, we'll be tackling how your credit score pertains to homeownership.

 Below are the topics we're covering:
  • How Your Credit Score and FICO Score are Calculated
  • Where to Check Your Credit Score
  • Credit Do's and Don'ts
  • How to Build a Good Credit History
  • How to Improve Your Credit Score
  • 10 Things That Can Hurt Good Credit
If you or anyone you know ever have questions about buying, selling, renting, or investing in real estate, please don't hesitate to reach out to your friends at MHN Property Management. We'd be honored to earn your endorsement and will treat anyone you send our way like family.

Sincerely,
Darren Graichen
Business Development Manager
REALTOR®
210-402-9696 
invest@mhnproperties.com
Courtney Rosen
Senior Vice President 
REALTOR®, TRLP® 2020, MRP®, GRI®
210-402-9696
courtney@mhnproperties.com
Contact Darren
Contact Courtney
Find our monthly newsletter interesting? We'd be honored if you shared it with friends! 
Forward Forward
Share Share
Tweet Tweet
Share Share
Pin Pin
When deciding to buy a home, or even rent a home, your credit score will come into play. Landlords and property managers have the ability to run your credit score to see if you would be a safe investment, and lenders will run your credit score to see what kind of home mortgage they can offer you and what interest rates you qualify for.

How Your Credit Score
and FICO Score are Calculated

There are a variety of factors that are considered when calculating a credit score as well as a FICO score. Below are some of those factors.

Credit Score Factors:
  • Timeliness of payments
  • Amount of credit used
  • Length of credit history 
  • Frequency of credit applications
  • Variety of accounts
FICO Score Factors and Their Weight:
  • Payment history: 35%
  • Credit utilization: 30%
  • Credit history length: 15%
  • New credit applications: 10%
  • Types of credit: 10%
For general observations on the type of credit score needed to purchase a home, click here.

Where to Check Your Credit Score

Just as technology is evolving, so are the ways you can find out your credit score and access resources to help you decipher what it means. There are several free and paid-for tools you can use to find out your credit score and your FICO score. For some of the best services you can use to check your score, click here

Credit Do's and Don'ts

If you're trying to qualify for a home mortgage and secure financing to purchase a home, there are some do's and don'ts you'll want to be aware of in order to ensure you have the best score possible and that your financing doesn't fall through.

Do's:
  • Keep all accounts current, including mortgages, car loans, credit cards, etc.
  • Make all payments on or before due dates on all accounts, even if the account is being
    paid off with your new loan.
  • Request credit reports and dispute any errors.
Don'ts:
  • Quit your job or change jobs. If this is likely, consult with your loan officer. 
    • If you need to connect with a responsive and reliable loan officer, please reach out to MHN Property Management so we can help!
  • Allow anyone to make an inquiry on your credit report except your lender.
  • Apply for credit anywhere else except with your lender. This causes more “hits” on your credit rating which can reduce your credit score.
  • Change bank accounts or transfer money within your existing accounts.
  • Co-sign for anyone, for any reason, for anything.
  • Purchase or attempt to purchase anything else on credit such as another car, boat,
    appliances, or other real estate.
  • Charge any abnormal amounts to your current credit cards or credit lines.
  • Send in late payments, or incur late fees for anything.
  • Pay off debt and keep balances low on credit cards and other revolving credit.
    • Paying off old debt can cause your credit score to drop, and depending on when you're planning to buy a home, may or may not be a good idea.

How to Build a Good Credit History

Building a strong credit history is important and will be crucial to helping you secure financing for any big purchase you make down the line. Below are some tips on how to build a good credit history and ensure you get the best rates:
  • Get a secured credit card.
  • Get a credit-builder loan or a secured loan.
  • Use a co-signer.
  • Become an authorized user on a family member's credit card with a good history.
For more tips on how to build a good credit history, click here

How to Improve Your Credit Score

If your credit score could use a little love to get it in a range that makes you look better to lenders, we have some tips on how you can improve your score!
  • Pay your bills on time.
  • Pay off debt and keep balances low on credit cards and other revolving credit.
  • Apply for and open new credit accounts only as needed.
  • Don't close unused credit cards.
  • Don't apply for too much new credit, resulting in multiple inquiries.
  • Dispute any inaccuracies on your credit reports.
For more information on how to improve and rebuild your credit score, click here

10 Things That Can Hurt Good Credit

After establishing a good credit score, you want to keep it, but did you know that there may be some things you're doing that are hurting your score? Try to avoid these 10 things that can have negative effects on your score:
  1. A late payment.
  2. Not paying all of your bills on time.
  3. Applying for more credit.
  4. Canceling your zero-balance credit cards.
  5. Transferring balances to a single card.
  6. Co-signing credit applications.
  7. Not having enough credit diversity.
  8. Holding high credit card balances.
  9. Unemployment leading to missed payments.
  10. Ignoring your credit report.
For more information on each factor that can hurt your good credit score, click here.

Kind Words From Past Clients

"The whole 9 yards. Courtney and her team going above and beyond is just the starting point. Give them a try! I can't think of anything they need to improve. See for yourself; they are tremendous."
- David via Google

"MHN is a great company and the people there are great to work with. Great customer service and response time."
- Roni via Google

Connect With Us on Social

Instagram
YouTube
Facebook
Twitter
Website
Thinking about making a move, renting a new home, or want to learn about what it takes to invest in the San Antonio real estate market? Reach out to us anytime!
Darren Graichen
Business Development Manager
REALTOR®
210-402-9696
invest@mhnproperties.com
Contact Darren
Courtney Rosen
Senior Vice President 
REALTOR®, TRLP® 2020, MRP®, GRI®
210-402-9696
courtney@mhnproperties.com
Contact Courtney
Texas Real Estate Commission Information About Brokerage Services
Texas Real Estate Commission Consumer Protection Notice
view this email in your browser
Copyright © 2020 MHN Property Management, All rights reserved.


Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.

Email Marketing Powered by Mailchimp