buying a home 2025Buying a Home 2025

As you prepare to purchase a home, getting your finances in top shape is crucial.

One of the most important factors lenders consider is your credit score — the higher your score, the better the interest rate you might qualify for. Managing your credit wisely can make a significant difference in your home-buying journey.
Many potential buyers face questions about their credit mix and the number of credit cards they maintain. According to Experian, the average American has 3.9 credit cards. Some consumers may think canceling unused cards is a smart move, but it’s not always that simple.

Bobbi Rebell, a Certified Financial Planner (CFP) and personal finance expert at CardRates.com, highlights both the pros and cons of closing a credit card:

Pros of Canceling a Credit Card
• Avoiding Unnecessary Fees: “If you’re paying an annual fee for a card you’re not using, canceling it can save you money,” Rebell advises. However, before taking this step, consider asking your credit card issuer about transitioning or downgrading to a no-fee or lower-fee card that better fits your needs.
• Minimizing Fraud Risk: An unused credit card can be a target for fraud, so canceling it might offer added peace of mind.
• Simplifying Finances: Fewer accounts mean fewer bills to manage, track, and monitor.
• Limiting Temptation: Canceling unused cards can help curb unnecessary spending.

Cons of Canceling a Credit Card
• Impact on Your Credit Score: Closing a credit card can reduce your available credit, increasing your credit utilization ratio—a key factor in calculating your score.
• Shortening Credit History: A lengthy credit history is favorable to lenders, and closing older accounts can hurt this metric.

Why Speak to a Loan Officer First?
Before making any drastic changes to your credit profile, it’s imperative to consult with a knowledgeable loan officer, like me. I can help you:
• Understand the potential impact on your credit score.
• Strategize to maintain or improve your financial standing.
• Ensure you’re positioned to qualify for the best mortgage rates possible.
Your credit decisions today can affect your home-buying potential tomorrow. Let’s work together to develop a plan that fits your financial goals and keeps you on track for homeownership success. Contact me today to start your journey with confidence!

Buying a Home 2025

Here is a link to some of the types of home loans I finance as a Broker: Types of Loans

Contact me today to learn more:

Grandpa Mortgage

Jeff Markell NMLS# 224196
Grandpa Mortgage – U.S. Air Force Veteran
Reverse Mortgages – Mortgage Broker In OC
(714) 614-4040
jeff@empirehomeloans.com
Empire Home Loans, Inc. NMLS# 1839243
Serving all of California
www.mortgagebrokerinoc.com
Check out my Reverse Mortgage Videos

#BuyingAHome2025 #CreditScore #MortgageBrokerInOC

Buying a Home 2025
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