IS DEBT HURTING YOUR CHANCES AT A MORTGAGE?

All sorts of things can lead to increased use of credit cards. As winter turns into spring, expenses can start to pile up. One thing leads to another, and before you know it what seemed like a mole hill can quickly turn into a mountain of debt.

Too much debt can hurt your chances of getting a great mortgage, whether you're in State College, Williamsport, or anywhere else. In order to maintain a higher credit score it is important to keep some things in mind.

D. Shane Whitteker is the owner and chief broker at Principle Home Mortgage. He specializes in helping his clients navigate the process of getting a loan to purchase a home. Part of that process is ensuring his clients don't have too much debt to qualify for a mortgage that's right for them.

"The ratio of credit limit to balance has a significant impact on credit score," Whitteker says. "It is important to manage this as well as you can."

According to Whitteker, this advice is especially relevant to those with home buying in their immediate future.

"This is especially important to someone that is interested in buying a home in the next six months. The higher the balance on the card compared to the limit, the lower the score will be in general."

There are two ways to deal with a bad debt to income ratio. The first is obvious which is to pay the balance of what you owe on your lines of credit down. The second is to ask for a higher credit limit. Whitteker stresses that his clients only take the second option if they are intent on planning to manage the extra responsibility properly.

To learn more about how to get a great mortgage in Central Pennsylvania, contact the experts at Principle Home Mortgage today!