If you're seriously thinking about buying a home there are certain requirements you need to meet before you start shopping for homes. One of these is knowing where you stand with your credit. To do this, you can get a copy of your credit report directly (refer to my article on ‘When Was Your Last Credit Report Check-Up?')  to give you a good overview of your credit payment history and ensure there are no errors (79% of credit reports have errors that may negatively impact a credit score!)   What you won't get on your self generated report is a 'credit score' that lenders refer to.

To go a step further, have the loan officer you are working with pull your credit report and review it with you. Their method plugs your credit data into software that analyzes and cranks out a credit score. If your credit score is not up to home purchase guidelines, your lender will work with you to determine a course of action for addressing or improving your credit score.

Your credit score is also known as your FICO score with 800 being near perfect and 400 approaching as bad as it gets. The vast majority of people will have scores between 600 and 800. Going below 720, however, your credit score will list up to four reasons why your score is not currently higher. FICA Score Ranges and Grade are shown below:

• 750 and above Excellent A++
• 680 to 750  Very Good A+
• 620 to 680 Good A
• 580 to 680  Above Satisfactory B
• 550 to 580 Satisfactory B-
• 480 to 550  Below Satisfactory C

It takes time to improve credit scores and depends on the type of credit issues on your report. Usually, positive results can be accomplished with 60 to 90 days but there is no guarantee. With this said, I suggest you review your credit report at least 6 months prior to an anticipated home purchase. This will help avoid unexpected delays when you are ready to make a purchase - and make home buying experience less stressful.

Here are a few tips on maintaing or improving your credit scores in preperation for a home purchase:

• Plan to pay your bills on time and follow through.
• Do not fill out credit applications needlessly.
• Do not keep your credit cards nearly maxed out.
• Don't live beyond your means.
• Do not make major credit purchases (such as a vehicle) that might affect your ability to qualify for a home.
• Don't close out zero balance accounts - they actually can improve your credit scores.

If you considering a home purchase in our area and would like more information on qualifying for a loan or the names of reputable lenders I have worked with, feel free to contact me.  I am also happy to provide you with a list of homes for sale that meet your criteria. I know and specialize in Round Rock, Austin, Pflugerville, Cedar Park and Leander.

Karen Staha, CRS,GRI,ABR, REALTOR - Selling Texas Since 1995 - Gaston & Sheehan Realty - Call me direct: 512-217-2435 email: kmstaha@aol.com website: www.karenstaha.com