Buying a Home in League City? Here are Some Quick Credit tips.
When buying a home your credit score can have a great effect on the down payment that you are required to put down on a home as well as the interest rate that you will be paying.
Here are a couple of good tips to keep in mind.
Credit Tip #1
Did you know that some surveys have shown that as many as 78 percent of Credit Bureau reports are missing at least 1 positive trade line (IE. a Credit Card) and fully 1/3rd are missing a positive mortgage payment?
Verifying that you or your client's POSITIVE information is being accurately reported is as important as working on the negative!
Credit Tip # 2
Did you know that some credit card companies (IE. Capital 1) are notorious for not reporting your credit limit? The bureaus will then use your high balance as your limit. This could result in your score taking a nice hit because you are "Maxed out." For example, let's say your credit limit is $1,000 but the most you've ever charged was $300 and you currently have a balance of $250. You should only show a 25% credit usage but your limit is being reported as $300. Now, you are over 80% credit usage and your credit scores take a big hit. Verifying that all limits are reported accurately is a must!
Credit Tip #3
How is your credit score calculated? It's important to know so that you can attack the highest priority when working on improving scores.
1. Payment history: your track record. (35%)
2. Amounts that you owe: how much is too much? (30%)
3. Length of your credit history: how established is it? (15%)
4. New credit: are you taking on more debt? (10%)
5. Types of credit in use: is it a "healthy" mix? (10%).
As a side note, I want you to think of us as part of your team. When you find customers that can't qualify because of low scores, don't say no; just say "not yet." Once you send them our way, we'll keep you 100% informed on their progress and in no time at all you'll have pipeline business coming back your way! Now, here's those tips I mentioned:
Focus on what's most important when it comes time to improve it! When the time comes for you to seriously start looking to buy your next house contact Sarah Segler with Proficio Mortgage. They are Awesome, Professional and have great interest rates!
When you get ready for your home search contact The Bly Teamand we will set you up on a search that e-mails ALL listings that fit your search criteria as they come on the market.
I hope you found these tips useful and when the time comes for you to seriously look at buying a new home, give us a call and we will get you on the right path!.
Deborah Bly Selling homes in League City TX
RE/MAX Space Center
217 East Main Street
League City, TX 77573