The dream of having a house of your own is for every human. Everyone wants to build their dream home; a place that screams of uniqueness and makes us feel contented ourselves. Unfortunately the reality of building also demands lots of hard- work and financial strength, as building a home are pricey. Something that people have to earn through years of their life. A bonus if you are blessed with a decent credit score
Maybe you are thinking, what is a credit score? Simply put, a credit score is a number from 3 digits that puts you in either a yes or ned category for creditworthy. The better your credit score, the easier a home loan ( etc.) you will be approved for. (2) With a great credit score you can get a home loan at a lower interest rates, think me one step away from finally having my dream house.
A Quick Note Why You Need to Fix Credit Before You Buy a House
Credit Repair: What is it?
So, what credit repair is is basically Problem credits identified and corrected for you. Reviewing your credit report on a regular basis is one of the most important things that need to be done to allow for a high credit score. If your score is damaged, little mistakes can erase the affect other large factors like having a felony or being 30+ years old. Avoid these mistakes:
Make sure that you get your credit reports from creditors or credit bureaus.
Read it executionwise
File errors on those.
Correcting these errors will help your credit score. Besides, you need to keep on paying on time for your credit score to be managed or raised.
Benefits of Credit Repair While Getting A Home
Your credit score is how responsible as a financial person. A mortgage lender bases its lending decisions heavily on credit scores. A high credit score basically means to mortgage lender, you are a low-risk, hence they will give you better terms (less首付, lower interest rates) and you save thousands over the life of your loan as a result.
Borrowers who are seen as high-risk by lenders have to pay higher interests. But showing a good history of timely payments help you gain trust and in turn result into lower rates. So it is important to learn and hone your credit score.
If your credit is not in the best shape cos, then you’ve got deep pockets and can speak more appealing to the lender. So, to better leverage the minimum credit score requirements and their interaction with mortgage applications comprehension is also key.
How To Raise Your Score Before You Buy
Credit repair is not easy, but it does require some strategic thinking on your part. Though nothing magical happens overnight, by doing this you can increase your score by a factor as the time goes by:
- Credit Report Check
Always check your reports for errors and discrepancies.
- Pay Down Debt
Debt reduction is vital to improve your score. You could go with a high-interest debts first tactic.
Debt First — The Long Run Low-Yields To Save Foremost.
Begin with the smallest debts for immediate wins and motivation.
Basic Strategy: Keep your credit utilization under 30% The less you use, the higher your score.
- Pay on Time
35% of your overall credit score is based on payment history. A missed payment, even one, can damage your score so making payments on time should be a top to do list.
Keep Battling And You Will Realize Your Dream
NO! Do not let a bad FICO score cast a shadow on your dream home. Instead, approach the process strategically to build your credit, get better mortgage terms and make your dream a reality. Sure, there will be hurdles along the way but you can always get through them with determination and a good plan in place. Be Patient, it will happen; be consistent—you will get your result.