When you are preparing to buy a home, there is one thing to know which can help you before you begin the process, your credit score. The better your score, the better chance you have at getting a lower interest rate on a new mortgage. You should keep a regular watch on your score to ensure any errors can be changed as quickly as possible, and any changes that are needed get reflected properly. With your current score in hand you can plan for anything you may need to do to improve it before applying for a mortgage loan. A recent survey released by Experian, a major credit reporting firm, shows that when future buyers know their scores, the more confident they are when it comes time to make the leap to home ownership.
The survey by Experian shows that many future buyers are taking steps to improve their credit in preparation to buy a home. These are steps you can take as well should your own credit score need improving. The most common step to take is paying down debt; 55% of those surveyed are doing just this. There is also paying your bills on time, a focus for 54% of the survey participants. You can also keep a balance on a lower interest credit card to help build a good credit history without spending too much in fees, and participate in programs to protect your accounts from fraud or identity theft. If you have credit cards and are planning to buy a home in the near future, another good way to keep your score higher is to refrain from opening any new accounts, too many accounts will affect your score.
With these steps to improve credit in play, many a future home buyer feels ready to buy a home according to the survey. While this is not the only thing that will make or break a home purchase, knowing your score and having good credit will help you gain more buyer power. When you are ready to buy or sell a home, we at Haylen Group are here to help you with all of your real estate needs! If you are unsure what your options are, call Helen Chong at (408) 800-LIST or email at Helen@HaylenGroup.com. You can also visit us at our website for available listings and additional information.