Texas Real Estate Commission Information About Brokerage Services                       Texas Real Estate Commission Consumer Protection Notice

Dallas homes for sale, Plano homes for sale, Frisco homes for sale, Prosper homes for sale, Allen homes for sale, McKinney homes for sale, Murphy homes for sale, Celina homes for sale, homes for sale


About Us Buyers Sellers Investors Commercial Relocation Contact Us Lenders Inspectors Titles
Builders Vendors PlaceHolder
Search Properties
Find Your Home's Value
Local Market Snapshots
Local Real Estate Trends
National Market News
Foreclosure vs. Short Sale
Dallas FW City Directories
Dallas FW School Ratings
Dallas FW City Tax Rates
Estimate Closing Cost
Mortgage Calculator
Mortgage Amortization
Green Tax Credit
Types of Loans
Relocation to Texas
Customers vs Clients
Repair Cost vs Value
Rent vs Buy Calculator
Your First Home?
My Blogs
Test Your R. E Knowledge
  Property Management
Open House Manager Tool

Doís and Doníts Before Applying For a Mortgage Loan

If you are buying a home sometimes soon and have plan to apply for a mortgage loan follow these Doís and Doníts recommendations:

Doís and Doníts Prior to Applying a Mortgage Loan:

About two months (if you know your credit is good) or 8-10 months (if you know you have credit issues)  prior to applying for a Mortgage loan, get hold of your free credit reports from three major credit bureaus in the United States; Equifax, Experian and TransUnion. You can request your credit reports via phone, mail, or website from each bureau. Optionally, you can request your credit score from each bureau by paying some fee. There are also many websites that provide you with reports and scores and monitoring your credits for a fee. However, most of them offer a one-month free trial. See What is a Credit Score to find out how and where you can request your credit reports and scores.

Remember you can request and get your credit reports without hitting your credit score as many as times you want. However, usually you are only entitled to one free report from each credit bureau in a year or more if you meet certain criteria. 

After getting your credit Reports, Do the following:


         About 8-10 months prior to applying for a Mortgage loan, get hold of your free credit reports from three credit bureaus.

         Check and report for correction any inconsistencies, inaccuracy, missing information or credit history, the negative items that should have been removed or deleted, etc.

         Try to negotiate, work it out with creditors and resolve issues regarding negative items as much as possible.

         Pay and continue to pay all your bills (at least the ďMinimum PaymentĒ on Credit Cards) and loans on / or before the due time.

         Look at each credit cardís Balance/(Line of Credit) ratio and pay as much as possible to reduce the unpaid balance to a point the that ratio becomes less that 30%.

         Have a good cushion of available credit between your current balance and your credit limits on all open trades

         Time-by-time, request a soft credit line increase. Typically, creditors can increase your line of credit a couple of hundreds or thousand dollars without running your credit report, if you have a good record or relationship with them for a year or so.

         Use (charge at least some amounts) all your credit cards including those that you usually donít use every month. And off course pay them on time.

         Pay off smaller debts.

         If you donít have any credit card or credit history, you need to establish a credit history. E.g., Apply Department Store Charge Cards and use them wisely, pay your bills on time. It takes at least six-twelve months to show established credit in your credit reports.

         Repeat above steps about 2 months prior to applying for a Mortgage loan. Get hold of your free credit reports from three credit bureaus again and go through the same steps as above until you have a good credit score.



         Donít be tempted to open a store charge card to receive discounts.

         Donít apply or accept any new Credit Card

         Donít apply ďHardĒ Line of Credit Increase.

         Donít apply for a new loan.

         Donít apply excessively again and again to get a credit card.

         Donít carry a large number of credit or store charge cards

         Donít Allow anybody run your credit report,

         Donít Close any of your Credit Cards

         Donít purchase a major item and charge Credit Cards

         Donít let the ratio of Amount Owed to Credit Line be greater than 30% for each card.

         Donít be late paying your payments or obligations

         Donít Change your Job

         Donít get involved in a law suit

         Donít file for Bankruptcy, foreclosure, short sale, etc.

         Do not place dispute in your credit report. This causes more delay for approving a loan and could cause a higher interest rate.

Please click the link to see Doís and Doníts After Approved a Mortgage Loan

Contact us about your Credit Score Questions

Equal Housing Opportunity Commission Bahman Davani REALTOR

Bahman Davani, CM, RP
TAHS, eAgentC, and
CCIM Candidate

Texas Five Star Realty
Office: (214) 457-7055
Cell: (214) 457-7055

Plano, TX 75026-1665

Follow ME button from AddThis Share this page in Facebook 

My Blogs:
Subscribe to Bahman Davani Blogs RSS See Bahman Davani Blogs See Bahman Davani Blogs in ActiveRain See Bahman Davani Blogs in WordPress See Bahman Davani Blogs in Blog.com Texas-Five-Star-Realty-Manta-Badge See Bahman Davani Blogs in SlideShare See Bahman Davani Blogs in Zillow   See Bahman Davani Blogs in Klout See Bahman Davani Blogs in Plaxo follow me on Texas Five Star Realty LinkedIn See Bahman Davani Blogs in Blogger

My Real Estate Designations and Certifications:
Bahman Davani REALTOR Bahman Davani Commercial REALTOR Bahman Davani ABR Designation Bahman Davani GRI Designation Bahman Davani CDPE Designation Bahman Davani SFR Shortsale Forecolsure Resource Certification Bahman Davani TAHS Texas Affordable Housing Specialist Certification Bahman Davani Inbound Marketing Certification Bahman Davani Certified Manager from Institute Certified Professional Managers Bahman Davani eAgentC Internet Profficiency Certification Bahman Davani NMLS RMLO Residential Mortgage Loan Originator License Bahman Davani TRLP Texas Real Estate Leadership Program Graduation Send Texas Five Star Realty Text via email

. Copyright 2011-2024 Texas Five Star Realty Web Site Developed by We provide a fast and easy solution for your business. .