I WANT TO BUY A HOME, HOW CAN I IMPROVE MY CREDIT?

I WANT TO BUY A HOME, HOW CAN I IMPROVE MY CREDIT?

As with many things - just asking the question - is a good first step.

1) Contact a mortgage professional in the town you wish to purchase in.  

The reason I have this as the first step is that a mortgage professional can pull your credit and advise you on where you are at and how to get where you want to go.   I adivise either sticking to a major bank lender like Wachovia, Wells Fargo, or GMAC in your local area because it will keep you away from the scam artists.  There are mortgage brokers not with the major banks who are awesome but there are some real scam artists who will take you for a ride.  

2) Keep credit balances on revolving lines like credit cards as low as possible. 

Credit scores are higher when you use a low percentage of your available credit.  So, if possible keep credit card and other revolving credit lines below 30% of available credit.   In other words if your credit card has a credit line of $5000 - keep the revolving balance below $1500.   This gives you plenty of room for emergencies and keeps your credit score high.

3) If you want to buy a house - don't go buy all new vehicles. 

Debt to income ratios are very important for determining what kind of home you will qualify for.   2 new vehicles with $500+ per month payments on each will take a chunk out of your income leaving less to use for a home.    Make your new home a priority and buy a home - then determine if you have enough available to purchase a vehicle.  Sometimes it is smart to save up or just have one nice car and one that will just "get you by". 

4) Pay on time! 

This seems like common sense but it is important that you pay attention to your bills and get them in on time.  Nuff said about that.  :)

5) Correct any mistakes on your credit report.

When your mortgage professional pulls your credit report - look for mistakes - and enlist their help in correcting any mistakes. 

6) Find a Good REALTOR

Now that you have your credit ready to go - call me and we will find you a home that your family will enjoy!