Improve Your Credit Score
It is very important to get a Pre-approval before you find the home of your dreams. We can help you to have everything in place if you have issues on your credit report. We can get you on the right track to be ready to put in an offer as soon as you find the home you want. It is virtually impossible to make corrections to your credit report if you already have a contract on a house.
There are strategies you can apply to make sure your credit score is as high as possible before you begin to look at homes.
- Sign up for Credit Karma to keep an eye on your credit score. It is a free service and it will alert you when your score changes.
- If you are looking for a pre-approval and call many companies this will affect your credit score negatively. Every time your credit is pulled your score will go down a couple points. You should be careful how many times you have people pull your credit.
- The two main components of your credit score are:
- your payment history
- and the amounts you owe.
- Bankruptcy filings and foreclosures, which can stay on your credit report for as long as 10 years, can significantly lower your score. It is never a good idea to take on more credit than you can handle.
- Late payments affect your score negatively. It is extremely important to pay your bills on time, even if it’s only the minimum monthly payment.
- Do not max out your credit cards. The percent of what you owe versus the credit limit will lower your credit score. The less you owe the better the credit score.
- It is said that by carefully managing your credit, it is possible to add as much as 50 points per year to your score.