Coleman & Sons Real Estate
451 Main St, Waltham, MA 02154
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Posted by Coleman & Sons Real Estate on 9/27/2019

Your credit score can play a major role in your ability to get the financing that you need to buy a house. As such, you'll want to do everything possible to improve your credit score before you enter the real estate market.

Now, let's take a look at three quick, easy ways to boost your credit score.

1. Pay Off Debt As Quickly As Possible

Get a copy of your credit report from each of the three credit reporting bureaus (Equifax, Experian and TransUnion). You are entitled to one free copy of your credit report annually from each credit reporting bureau, and you should take advantage of this perk so that you can learn about your outstanding debt.

If you have lots of outstanding debt, you'll want to start paying this off as quickly as possible. Because the less debt that you have, the more likely it becomes that you can get a favorable mortgage from a credit union or bank.

Don't wait to begin paying off outstanding debt. If you pay off even a small portion of your outstanding debt regularly, you can move closer to getting the financing that you need to acquire a terrific house.

2. Avoid New Credit Cards

A low credit score can be worrisome, and it may cause you to consider a variety of options to manage outstanding debt. However, if your credit score is low, there is no need to take out additional credit cards.

New credit cards may seem like viable short-term options to help you cover various expenses while you pay off assorted outstanding debt. But these cards are unlikely to help you resolve the biggest problem Ė paying off your outstanding debt to bolster your credit score.

Instead of signing up for new credit cards, it often helps to cut back on non-essential bills. For instance, if you don't need cable, you may be able to eliminate this expense and use the money that you save to pay off outstanding debt. Or, if you have first-rate items that you don't need, you may want to sell these items and use the profits to pay off myriad bills.

3. Keep Your Credit Card Balances Low

Once you have paid off your outstanding debt, you'll want to keep your credit card balances low.

It often helps to have one credit card that you can use in emergencies. If you keep one credit card and get rid of any others, you may be better equipped than ever before to maintain a high credit score.

Lastly, if you require additional assistance as you prepare to kick off a home search, you may want to work with a real estate agent. This housing market professional can help you narrow your home search to residences that fall within a specific price range. That way, you can avoid the risk of spending too much to acquire a house.

Increase your credit score Ė use the aforementioned tips, and you can raise your credit score before you launch a home search.





Posted by Coleman & Sons Real Estate on 10/20/2017

If you have seen your latest credit score and feel like youíre less than financially fit, donít fret. Thereís plenty of reasons why people end up with bad credit. Thereís also plenty of things that you can do to amend and work with your bad credit. 


The Factors


Mortgage lenders look at a variety of factors when it comes to your credit and determining if youíre ready for a home loan. These include:


  • Age of credit
  • Payment history
  • Amount of credit debt


If you have opened new accounts frequently or ran up credit card balances without paying them down, these behaviors could negatively affect your credit score. 


Changing Your Habits


Just changing one of these bad habits can help your credit score in a positive way. This also means that a bad credit score doesnít equal not being able to get a home loan. Your home loan may just come at a higher price. 


What If Youíre Turned Down For A Loan?


You can ask your lender why youíre unable to get a loan. Some possible reasons that youíre getting rejected:


  • Missed credit card payments
  • Failure to pay a loan
  • Bankruptcy
  • Overdue taxes
  • Seeking a loan outside of what you can afford
  • Legal judgements
  • Collection agencies


If you have defaulted on a loan, missed payments or filed for bankruptcy, chances are that youíll have trouble securing a home loan. Other factors that can affect your credit score include negative legal judgements that have affected your credit, or having a collection agency after you. 


How To Fix It


If you have bad credit, itís not the end of the world. Itís possible that lenders can give you a loan if your credit score isnít too low. You could, however, face higher interest rates as a penalty for a low credit score. This is due to the fact that youíre more likely to default on a loan based on your risk factors. 


You can improve your credit score by:


Keeping existing accounts open

Refraining from opening new accounts

Trying not to approach too many lenders to find the right interest rate. Every time you get a credit check, it affects your score. 


Finding A Loan


Signs of bad credit can take awhile to disappear from your credit report. Sometimes, you have the opportunity to explain to lenders what these factors are in detail so you can secure the loan. There are even mortgage companies that assist you through the loan process to give you a boost in getting the loan.


FHA Loans


FHA loans are a great program option especially for people with bad credit. These loans offer low down payment options and have lower credit score standards. FHA loans have been helping people to secure their first homes since 1934.


If you have bad credit, the dream of home ownership is still possible. If youíre early in the process, get to work and keep that credit score up so that when you head out to apply for a loan, youíll be able to secure it.         




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