6 Tips to Get You in Credit Ready Before Buying Your First Home

1. Start Planning Early 

Getting credit issues resolved can be a very long process. But if you are in the market to become a homeowner, get on top of your credit issues before it is too late. Make sure you have a good credit score and be prepared to start when your credit score is at its best.

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2. Keeping track of your credit history

Your credit report will give you a snapshot of your credit history. You will be provided with a copy of your credit report when you apply for a loan. Your credit score will be updated on a monthly basis. You must be vigilant in monitoring your credit score. It is imperative that you pay your bills on time. If you do not, your credit score will be adversely affected, and you will end up paying higher interest rates.

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3. Reduce your expenses

The first thing you should do is look at your monthly expenses. List out all of your recurring expenses and which ones you can remove. You should cut down on your recurring expenses and this will help you pay back your debts. This will also impact your creditworthiness. The less you owe, the more the bank will lend you 

4. Cut down your debts

You could try to get a debt-to-income ratio under 50%. This means that the total amount of monthly debt you owe is 50% or less than your monthly income. If you can get this ratio under 50%, it will make it much easier to pay off the debt.

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5. Manage your bills

Late bills will hurt your credit and will also lead to late fees. Set reminders to ensure you can pay everything on time.

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6.  Avoid asking for credit in different places.

There are some credit checks that are more difficult to pull than others. A hard credit inquiry or hard pull can lower your credit score and as such it is important to avoid such actions. If you are shopping for a house loan, you can't shop for an auto loan at the same time.

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Our commitment as your real estate professional is to help you find your dream home at the right timing for you.

It's the biggest purchase of your life, and can assure you that even small mistakes can be costly.  BEWARE, technology changes almost daily and I can help you pinpoint all the homes for sale near your location points. I have access to over 18 million properties from hundreds of locations, including Government  properties, action homes, VA homes, HUD Properties and all available private houses for sale in between.

Please call us to get started

Fernando Herboso Broker 301-246-0001