Buying a home is a dream come true, isn't it? We all want to own a home and when that dream comes true, it's the most wonderful day of our lives. However, it is the time when your credit is at risk. Your personal information is shared with a number of people such as your real estate agents, brokers, etc. Here are 5 ways in which you will be able to safeguard your credit before you buy your home:
Don't share your personal data with everyone: You don't have to share personal information with real estate agents or sellers. They only need to know whether or not you can afford the property. You should only share your personal financial information with potential mortgage lenders.
Make one person your point of contact: Try dealing with one person when you apply for a mortgage. This will help you minimize the risk of identity theft and only 1 person will have access to your paperwork. Never send details like social security numbers through the email. You may even ask the loan officer where and how your information will be secured.
Keep your personal items packed: When you're selling a home and moving to a new one, you'll find many people taking a look your old home. So, it's important to get organized. You should keep all those financial documents with your name and account numbers mentioned on it in a box. You can even lock it for safety. Try to keep it at a place where strangers won't be able to access. Pack up your personal items like marriage certificates, diplomas and family trees etc. and keep it at a safe place. Apart from that don't keep your computer passwords taped to your desk.
Mortgage applications: When you shop for your mortgage, you will definitely worry about too many hits on your credit reports. The latest version of the FICO software allows a wider window - all mortgage applications made within 30 - 45 days will be counted as one on your credit report. However, there are a lot of lenders who may use the older versions of the software. This will mean that you should submit all mortgage applications within a 14-day period in order to remain in the safer side.
Keep your credit card balances low: In order to maintain a good credit score, you should try to keep your credit card balances low. In order to maintain a good credit score, you want to keep your use of cards to 10% or less of the limit. You should also try using only one or two cards. You should pay all your bills in full regularly and delay opening new accounts until you've closed on your mortgage.