Raise your Credit Score: Get Ready to Buy
If you are looking to buy a home, whether it is your first time buying a home, or even if you are selling your home to buy a new one, having a higher credit score can save you a lot of money in interest and fees. Below are some tips to get ready for a home purchase. Consulting with a great mortgage lender beforehand can really give you a lot of help in knowing the exact best steps for your scenario, but these tips can help you get ready.
• Pay down debt, without draining your savings. Try and keep all credit utilization below 30%.
• Make consistent, and on-time payments to all loans and credit cards. Pay above the minimum due.
• If you are early in the process and do not have a large amount of available credit, consider opening up a new credit card or small loan. Although the new account inquiry will lower your score at first, the amount of available credit will raise your credit score in a few weeks.
• Get added as an authorized user to someone’s account with a higher limit, good age and payment history.
• Get a secured loan or credit card.
• Minimum Credit Score for a home loan is 620, and this is slowly moving up to 640 with most lenders, but score is just a small part of what lenders look at. Debt to income ratio, payment history, credit history, and derogatory marks in your credit file can impact interest rates and terms.
• Review Credit Reports for inaccuracies and inconsistencies. Dispute anything you find that is not correct.
Buying a home can take some time to be ready for, but with a good plan, anyone can do it.
I would love to help you with any questions you might have. Be sure to contact me for help.