Buy a House Fast

This is the second post in a two blog series. To find more tips, visit: Part 1

If your credit score needs a boost, follow these tips to get back on track:

• Have you established a joint account?

You can improve your own credit score when you open a joint account with someone with a good score already. This practice tends to bump your score up as well. Who can help? Find out whether your parents, spouse, or other family members have good credit scores and ask whether any of them is willing to open a joint account as a favor.

If you find someone willing to help boost your credit score with a joint account, you are liable for your expenses! Going forward, slacking on payments can reduce your own score and theirs too. A joint account gives both parties equal responsibility so keep up your end of the bargain and ensure they do too.

• Can a secured credit card help?

Yes! Secured credit cards can help you improve and build upon your credit history. If you are a member of a credit union, choose their secured credit card first. This is how it works. You deposit a certain amount with your lender and receive a credit limit roughly the same as your deposit.

While picking the card, make sure that your credit issuer is reliable. Other helpful tips include looking for one that reports to all three credit bureaus; that has a low or minimal annual fee; and that can possibly convert into an unsecured card after a year of regular payments.

• How Can Revolving Loans and Installment Loans Make Things Easier?

Credit cards are revolving loans. You pay a portion of the total sum borrowed over a period of time (plus interest). Using a credit card with self-discipline can help build your credit score. Always pay your bills on time; pay more than the minimum payment; avoid using more than 30 percent of your card’s credit limit.

Installment loans include those for cars or other personal purchases that are paid back in installments. When you pay off an installment loan, on time without missing a payment, you boost your credit score. You’ll see your credit score change after regular loan payment of six months or more.

• What Else Should You Know About Boosting Your Credit Score?

Watch your expenses closely if you are in the process of buying a new home. Just because you have been pre-approved for a home loan DOES NOT mean that you are off the hook! Avoid taking on a huge debt for a new car when the loan process towards your house is still under progress. If you’re in the process of investing in a property or home, take extreme caution in your expenses.

Think you’ve been there, done that? Feel ready to own a home now? Looking to get started? Express Realty Services can be at your assistance. With an in-house lender in place, we can help you go through the pre-approval process for no extra charge. Besides, we’ve sold more than 800 homes in the past 4 years, catering to a wide range of budgets. So we’re sure we can find one home that’s just right for you and your family.

Just pick up the phone and call us at 1-888-306-9450 or visit our website.

Share your ideas about building a good credit score by adding a comment and stay tuned for more blogs on this and other important topics.

This is the first post in a two blog series. For more details, visit: Part 2.

In 2004, Bob and I bought our home in Arlington, VA. It seems strange now to call that “back in the day,” since it was only six years ago. But since our investment, the markets, economy, and industry trends has changed so drastically, it seems like a long time ago! Life was simpler then, and it was much easier to get a loan approval to buy a home.

How things changed! For some, buying a house today is a nightmare. Your earnings quotient could determine whether you CAN buy a home or NOT. A good credit history can help you negotiate a better interest rate and sometimes even lower your down payment. If you lack a credit history, banks and lenders are wary about extending you a loan. Why? It’s difficult to tell whether you will make a responsible mortgage payer or a risk.

But not all is lost! You can work your way to building on your creditworthiness through a stable credit score. Here’s how you could begin, what you should know, along with a few ‘dos’ and ‘don’ts’ to add to the mix:

• What’s your Credit Score?
  As basic as it sounds, fixing your credit score is possible only once you know where you stand. A lot of people presume that they have a bad score. A helpful hint – delaying payments by a couple days doesn’t always affect your score. What ruins it is when you’ve deferred paying over 30 days. Having said that, paying on time adds more stability to your score. Getting a copy of your most recent credit report can help you strategize your financial plan accordingly.

• Have good Banking Habits?
  Creating and maintaining a sound checking and savings account could take you a long way in building creditworthiness. You bank account is the first place that lenders would look at to understand your financial stability and your spending habits.

• What affects your Credit Score?
  It takes way more time to build on your credit score than to crash it beyond comfort. You know better than that! So constantly keep three things in mind:
  a) Always always always pay your bills on time. If you find it difficult to remember the due dates, set reminders and automatic payments in place to ensure you pay on time.
  b) Don’t max out your credit limit every month. Try and maintain your credit usage to about 10% – 30% of the upper limit. This doesn’t just help you maintain a good score but also dodges the debt trap.
  c) Pay your credit card in full. This is self explanatory – don’t let the credit spill over to the next month.

Thinking of buying a home? Not sure if you can afford one now? Express Realty Services is here to help you. With an in-house lender in place, we can help you go through the pre-approval process for no extra charge. Besides, we sell more than 30 homes a month, catering to a wide range of budgets. So we’re sure we can find one home that’s just perfect for you.

Just pick up the phone and call us at 1-888-306-9450 or visit our website.

To find more tips, visit: Part 2

Share your ideas about building a good credit score by adding a comment. Follow our blogs for helpful home buying tips.