Thinking about buying a new house? Wondering where to begin? First thing a potential buyer should do is speak with a local lender, get pre-approved. This is vital for many reasons, no sense going on a road trip if there is not gas in the car, right? Same thing with your credit and buying power. Check to see what rates you qualify for, type of loan, $ required for down payment, max purchase price you qualify for, etc. In Arizona we need to submit a signed pre-qualification form with an offer, as well. Even if you do not qualify for the property you want now, a good local lender can explain where you are at, and what you can do to improve your scores. That way, if you can't buy now, a new home can be a part of your future.
Some tips in regards to credit, paying off revolving accounts monthly may not improve your credit score. Many consumers mistakenly believe simply paying off revolving accounts each month will help their credit score. The opposite may be true.
Charging a large percentage of the limit each month will likely lower a consumer’s credit score even if they pay off the balance in full since the day that the creditor reports to the credit repositories is usually when there is a balance, not the few days of the month when the account is at zero.
It is the percentage of utilization of the limit on revolving accounts reported by the creditor that influences the credit score. Only if the consumer can time their payoff each month to coincide with the reporting cycle of the cardholder will paying off revolving accounts monthly help their credit score.
Once a buyer has been pre-approved, start a relationship with a local Realtor. Good luck!