The team at Kingdom Realty want to help you open the door to your new home. Below are a few tips to guide you in improving your credit score before applying for financing.
Check Your Score
Stay on top of your credit score by checking with any of the 3 Credit Bureaus, Transunion, Experian, Equifax. Knowing your past history of paying bills on time is important. Mortgage companies rely on your FICO Score which is a grading system that shows how well you have handled your financial obligations.
Ensure Accuracy of Your Report
Once you have ordered your report, go through each bureau’s report to ensure your information (addresses of residences, employers, your name, payment history) is correct. Contact the credit bureau to obtain forms to dispute any inaccuracy reflected on your report.
Pay Bills on Time
To prepare yourself to purchase a new home, begin paying each of your bills in a timely fashion. A history of late payments can negatively impact your credit score and make it a challenge to purchase a new home. Begin paying down the balance on cards that are maxed out. Experts advise a credit utilization of no more than 30 percent of your total credit limit.
Handling Credit Accounts
Do not close any of your credit cards or open new ones. Closing a credit card can negatively impact your credit score. Don’t open new credit card accounts if you are preparing to purchase a new home. Individuals with no or little credit however can establish or build credit history by credit borrowing – but should do so based on the amount of credit their income can support to ensure timely payments.
Our team of license real estate professionals can connect you with Kingdom Realty’s affiliate finance companies to learn more about how to prepare for the purchase of a home.