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Credit Score Q&A with Loan Officer Alberto Tirado

Credit Score Q&A with Alberto Tirado

St. Louis – December 16th, 2021 – Gershman Mortgage, a leader in the mortgage industry, specializes in providing an array of the best loan programs and homeowner resources to owners all around the United States. It’s no secret that boosting your credit score can be difficult at times, especially during the holidays.

We want to provide homeowners with the best resources for keeping their credit score high during the holiday season! Gershman Mortgage has your back with a Credit Score Q&A with Alberto Tirado, Loan Officer at our Edwardsville, Illinois branch.

Q: Can you further explain Ratio to Debt Income and how that pertains to getting preapproved for a mortgage?

A [Tirado]:  Debt to income ratio compares your gross monthly income to your monthly debt obligations. Your ratio affects what mortgage products you would qualify for and are best suited for. Having lower debt to income ratios shows lenders that you are more likely to manage debt payments effectively. Being able to manage debts affectively will increase your chances of getting a pre-approval!

Q: Can you describe some best practices for credit usage going into the new year in relation to getting preapproved for mortgages?

A: Some best practices for credit usage are as follows:

  1. Pay your bills!
  2. Pay On time.
  3. Keep credit utilization under 30% meaning for every $100 in credit limit do not carry a balance over $30 going into next pay cycle.
  4. Review your statements monthly for accuracy. This is essential to correct any issue if they occur.
  5. Keep an eye on your credit score.

Q: Should all credit be paid off during the preapproval process?

A: Before paying anything off or down, consult with your loan officer. Paying off items can drastically change your credit score depending on length of history for that trade line and usage. Homeowners, ideally want to pay their balances low so that it can reduce their debt-to-income ratios but not pay it off completely, so that it doesn’t affect the credit score. Come up with a plan of attack with your loan officer so you can see what the best bang for your buck is and seeing if paying down credit vs utilizing that cash elsewhere for down payment and closing cost.

Q: What are major DO’s and DON’Ts for credit scores when looking to buy a house?


  1.  Do seek advice from a lender as it pertains to your situation.
  2. Do continue to make your payments on time.
  3. Do keep an eye out on your credit profile.
  4. Do not make any big purchases.
  5. Do not miss payments.
  6. Do not cosign, open, or close any accounts unless instructed to do so.

Interested in talking with Alberto Tirado about your home loan needs? Contact Alberto today!

 About Gershman: Communities, families, and homes are at the heart of what we do at Gershman Mortgage.  Our founding principles are based on the core values of honesty, integrity, the entrepreneurial spirit, and putting our customers first.  We are passionate and committed to customer service and strive to ensure that we exceed the expectations of our customers.  We are a customer-centric company devoted to creating and maintaining long-lasting relationships.

NMLS #138063 16253 Swingley Ridge Road Suite 400 Chesterfield, MO 63017 (800) 457-2357 Equal Housing Lender.