Do You Need a Credit Boost Before You Purchase a Home?

Do You Need a Credit Boost Before You Purchase a Home?

Do You Need a Credit Boost Before You Purchase a Home?

In order to purchase a home, you need to ensure that your credit score is one that stands well with lenders, not one that makes them shudder.

The process of buying a home does not start when you look online to hire a real estate agent, it starts long before that–perhaps even unbeknownst to you. The first stop on the road to homeownership is to set your finances straight. “What does that entail?” you might ask. It includes understanding your credit score, likely the most critical piece of the home-buying puzzle. A good credit score offers more opportunities than a bad one. Here are a few tips on how you can increase your credit score before you inquire about the purchase of a home.

  1. Fix your mistakes. One out of every four people who are declined a mortgage were declined because they had some errors or inaccuracies in their credit report. When you spot these mistakes, it’s up to you to fix them. Credit bureaus are . . . complicated and proud corporations. Make sure to follow their instructions to the smallest detail in order to keep a good record of your file.
  2. Pay more than the minimum. A record of only minimum payments doesn’t necessarily hurt you, but it certainly doesn’t help. Always try to pay more than the minimum–even if it’s just a little bit.
  3. Maintain a low balance. The best way you can keep a good credit score is to avoid carrying a balance that is over 50 percent of your limit on every credit account possible.

Your credit score is a portrait of how well you manage your debt and finances. Make sure this portrait is one that looks like it was painted by van Gogh, not your 3-year-old child. For all of your home loan needs throughout Solana Beach and San Diego County, as well as all of California, contact Elvin Wesley at Ranch & Coast Mortgage Group Inc.