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Do You Know Your Buying Power?

By
Real Estate Agent with Lisa Von Domek Team TX License #0552989

Buying a Home   Know your Buying Power!

 

Financing and Your Credit Score

Credit is an important component in helping you find the best loan product to meet your home-buying needs. The way you handle credit obligations can greatly affect your loan choices and the interest rates you can get. In short, the better your credit, the more loan options you will have when choosing what’s best for you and your financial goals.

If you're in the market to buy a home, and you want to make sure you're doing everything you can to maintain good credit, here are a few tips:

  • DO pay what you owe – regularly and on time.
  • DON'T skip payments.
  • DO have a checking and a savings account.
  • DON'T hold more than four credit cards.
  • DO sign up for automatic payroll deposit with your employer.
  • DO keep your total debt-to-income ratio under 36 percent. 
  • DON'T exceed or continually increase your line of credit.
  • DO keep track of your spending and stay within your budget.
  • DON’T continually open and close accounts; maintain a constant profile.

Your lender will view your credit report when determining which loan products are best for you. Using your credit history, the credit bureau will develop a credit score. The higher your credit score, the more likely you are to qualify for a loan with the best interest rates and product features.

Not sure where you stand?
It's wise to obtain a copy of your credit report at least once a year in order to find your FICO score. You can obtain your report for free once a year from each of the three major credit bureaus at 
www.annualcreditreport.com. It’s especially important to figure your score before making a large purchase, like a house or a car, in order to review for accuracy and find out how you can work on improving it, if necessary. 

 In that report, you'll see the consumer credit given to you over the past seven years and be able to check your highest balance and current balance on outstanding debt, as well as see details about on-time and late payments and collections. Your home mortgage consultant should be able to help you better understand what your score means.  

You can get your credit report from many sources, but should you find something in your report that may be inaccurate, only the credit agencies can actually correct the data on your report. Contact the three major credit agencies directly: 

Equifax: (800) 685-1111 or www.equifax.com 
Experian: (888) 397-3742 or 
www.experian.com 
TransUnion: (800) 916-8800 or 
www.transunion.com

As for less-than-perfect credit, you should know that lenders typically are more concerned with how you’ve handled your recent credit than with what happened years ago. But even if you have a blemish on your credit history, don't let that stop you from buying a home. Buying a home – and paying your mortgage on time each month – is a great way to rebuild your credit.

For more information, visit www.LisaSellsTexas.com

 

 

Comments (33)

Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Thank you Nick & Trudy Vandekar, 610-203-4543 I appreciate that!

Feb 17, 2018 03:59 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

And yet we are not surprised, are we Nina Hollander 

Feb 17, 2018 04:01 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Thank you for stopping by to read and comment Golden1 Agents I am pleased that you liked my post!

Feb 17, 2018 04:02 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

So true George Souto and following simple, common sense steps make having a good credit score relatively easy!

Feb 17, 2018 04:03 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Debbie - Lifelock is good but I agree with you, time to check it for yourself!

Feb 17, 2018 04:12 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Wonderful advice for all buyers, Lisa. It always surprises me that buyers think they can skip this step and go right to house-touring! This is something that we should all be mindful of every day of our lives.

Hope you're having a great weekend!

This is also a great one for @Carol Williams' feature list... 

Feb 17, 2018 08:23 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I find that most people don’t know the power that they have most times, and real estate is just one part of that.

Feb 17, 2018 10:29 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Debe Maxwell, CRS One of the things I really love about this blog is how many people are helped!

Feb 17, 2018 10:30 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good  morning Lisa Von Domek ,

Glad to see this post featured! Well deserved. Everyone should read this because knowledge is power and this well laid out post is on point to understand your buying power!

Feb 18, 2018 04:54 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Its not like a trip to the Mall where we window shop. You must qualify to shop for Real Estate. 

Feb 18, 2018 06:33 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Lisa

This is valuable information for anyone considering buying a home...or getting credit in general. Seems like many really do not understand their credit and how what they do, or don't do, impacts it.

Jeff

Feb 18, 2018 08:00 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Lisa, One thing I heard about ways to improve credit scores is to pay credit cards, mortgage payments, before they are due.  I played around with this and have to say I believe it is true.  

Feb 18, 2018 03:12 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Thank you Debe Maxwell, CRS absolutely...credit first, house hunting second!

Hope you have had a great weekend!

Feb 18, 2018 07:59 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

So very true Laura Cerrano 

Feb 18, 2018 08:00 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Thank you Dorie Dillard it is always a thrill to have a Featured post!

Feb 18, 2018 08:01 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Absolutely true Richie Alan Naggar no window shoppers or tire kickers in real estate! 

Feb 18, 2018 08:01 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Thank you Jeff Dowler this subject is too important to be neglected.

Feb 18, 2018 08:03 PM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

I have heard that as well Kathleen Daniels and I would think it would be a factor.

Feb 18, 2018 08:04 PM
Sharon Mistowski
Horizon Lending Services, LLC - Flint, TX
Horizon Lending Services, LLC

Really great and informative post Lisa! I recently wrote about something very similar. Maintaining a consistent profile and not continually closing and opening accounts is a must for buyers!

Feb 20, 2018 05:32 PM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Great info for everyone to possess Lisa Von Domek, but especially those thinking of entering into a home buying or financing process in the future.  A very valuable share of info ...

Gene

 

Feb 21, 2018 12:13 PM