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  • Writer's picturePeter Seroter

10 Credit Tips: Do's & Don'ts Before Buying a Home

When it comes to purchasing a home, your credit score plays a critical role. It impacts not only your approval for a loan but also the interest rate you receive. At Life and Loans, we understand the importance of credit and want to help you navigate the journey of home ownership with confidence.


1. Monitor Your Credit Regularly: Stay informed about changes to your credit score and report with a reliable credit monitoring service. This proactive step can help you spot any errors that might unfairly bring down your score.

2. Pay Down Debt: Keeping your credit utilization ratio below 30% signals to lenders that you're responsible with your credit.

3. Pay Your Bills on Time: Protect your credit score from unnecessary hits by setting up automatic payments or reminders to ensure punctuality.

4. Build a Strong Credit History: Keeping older credit accounts open and using them occasionally demonstrates a solid history of credit management.

5. Dispute Any Credit Report Errors: Don't let inaccuracies bring your credit score down. If you notice any, dispute them immediately.


1. Don't Open New Credit Accounts: Resist the temptation of new credit cards or loans. New credit inquiries can reduce your credit score.

2. Don't Close Old Credit Accounts: Your credit history length contributes to your credit score. Keep old accounts open, even if they're not in regular use.

3. Don't Make Large Purchases on Credit: Hold off on that new car or appliances. These large purchases can increase your debt-to-income ratio and lower your credit score.

4. Don't Skip Payments or Pay Late: It might seem obvious, but it's worth emphasizing — always pay on time.

5. Don't Co-sign Loans: Avoid co-signing loans. If the borrower defaults, you'll be responsible for repayment, negatively affecting your credit and your potential for a mortgage.

Navigating your credit doesn't have to be a daunting task. With the right knowledge and discipline, you can enhance your credit health and your potential for homeownership.

Feeling overwhelmed? We're here to help.

Peter Seroter

NMLS 997692

Keywords: Credit Score, Home Buying, Mortgage, Debt, Credit Report, Credit Monitoring, Home Loan, Interest Rate, Debt-to-Income Ratio, Credit History.

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