Thinking About Buying Soon

Dated: 12/14/2016

Views: 47

Thinking about buying soon? Make sure your credit is in order


There’s no more important time to work on your credit score than when you’re about to apply for a mortgage. Improving your credit can save you a ton of money—we’re talking about thousands of dollars over the life of the loan. Here are the actions you can take that will have a notable impact on your score.

Pay down your credit card balances Credit utilization is one of the biggest factors in determining your credit score. Your credit utilization should at least be less than 30 percent of your limit, and it’s even better if you can get it below 15 percent. This rule applies to both individual cards and your overall credit limit.

It may even be worthwhile to use some of the cash funds you were planning to use for a down payment to pay off credit card balances.

Do no harm While you certainly want to improve your score if possible, at the very least you’ll want to keep it steady. Avoid opening new lines of credit if you’re applying for a mortgage in the very near future. This will cause a hard inquiry to show up on your credit report.

Take care of negative items It’s good practice to check your credit report for negative items a few times a year—you can get one free report from each of the three major bureaus (Experian, Equifax, and TransUnion) per year.

If you find any negative items (collections, late payments, etc.), write a letter to the original creditor. Explain the circumstances that led to the negative item, and request that it be removed from your report. It can be surprisingly effective, and removing a negative item will improve your credit score in a hurry. You can find some good templates for a request letter online.

Latest Blog Posts

Closet Storage System Basics

Your new home has an amazingly huge closet, but a startling lack of places to hang stuff. Sure, you could pile all your extra clothing, shoes and accessories in the corner, or move your antique

Read More

Rents Are On The Rise Dont Get Caught In The Rental Trap

There are many benefits to homeownership. One of the top benefits is protecting yourself from rising rents, by locking in your housing cost for the life of your mortgage.Don’t Become Trapped

Read More

The 5 Greatest Benefits Of Home Ownership

Recently, Freddie Mac reported on the benefits of home ownership. According to their report, here are the five benefits that “should be at the top of everyone’s list.”ONE:

Read More

Home Ownership Tax Loophole Best Gift From The Government Today

Home Ownership Tax "Loophole" Best Gift From The Government Today!The government seems to spend its time finding ways to increase taxes…In 2013, income taxes for America's top earners increased.

Read More