Lately we’ve had quite a few calls from potential buyers about how to improve their credit scores so they can obtain a mortgage at today’s low rates. They really want to get in before the rates go up. this week we’d like to provide some tips on improving credit scores to get mortgage.
Last month we wrote about a way for buyers who can’t qualify today to pick out a home and work with an investor we know who buys the home and rents it to the buyer until they can qualify. Certain conditions apply such as income requirements, etc. But what about people that are renting and just want to buy?
I ran across a blog recently with some good tips, and I’ll share a few of their tips here and a way to read the complete article if you’re interested.
Tips on Improving Credit Scores to Get Mortgage
One way to establish good credit if your credit is horrible is to use a secured credit card. Basically you can put your own money into an account and borrow against that and then pay it off each month. This establishes a payment pattern on the record, which can help those with horrific credit. Check out First Progress Platinum Select MasterCard Secured Card. Another secured card that is highly recommended is Secured Visa from Merrick Bank.
Keep in mind that on-time payments and credit utilization ratios are the biggest factors these days. Paying late hurts your score. It’s also better to have a few credit cards and spread out the credit amongst them than having one card all filled up. Each card has a utilization factor as well as the total of your debts. So if you’re maxed out on one card, that card is at 100% utilization which isn’t good. Be careful to watch your overall utilization as well.
Don’t apply for too many cards in a sort period of time. This will ding your credit. Be careful not to close a bunch of accounts even if you owe nothing on them. This changes your utilization ratio, essentially raising it because you just cancelled a debt free credit source.
Check your credit scores too. Credit Sesame was rated # 1 free credit score service followed by #2 Credit Karma. Keep in mind these free tools only check one credit bureau. You might try www.annualcreditreport.com as it will check all three.
26% of participants found credit errors that negatively impacted their credit, so it can pay to check.
We will have some upcoming Home Buyer Seminars you can attend where we’ll explain the nuts and bolts of buying a home in SW Florida. We’ll have a lender on hand to answer some of your financial and mortgage questions as well. Check with us for upcoming dates as these seminars are always popular and fill up.
here’s the link if you’d like to read the complete article Best Credit Report Site of 2014
If you’ve got questions now and don’t want to wait for an upcoming seminar, give our office a call. We can put you in touch with a lender now and get the process started for you. It’s never too early to start working on your credit.
And don’t forget, if you’d like to search the MLS and get a feel for what’s on the market, go to www.Topagent.com and search for Free.
Good luck and Happy House Hunting!
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RE/MAX Realty Group – Ellis Team
Fort Myers Real Estate Agent
7910 Summerlin Lakes Dr
Fort Myers, FL 33907