Buying a Home and Your Credit Report

Have you been looking at the housing market and thinking you want to buy a home?

Ads are everywhere listing properties, in fact, it would be hard to make it through a day without seeing eye-catching photos of your possible dream home.

But before you fall in love with that home – any home – do you know what your credit score is? When is the last time you checked your credit report?

Those two things should always be the first steps you take when you start thinking about buying a home.

Any lender will pull reports from all three bureaus and take the median score so it’s important to know the information on all three.

The free versions of the reports do not include your score; however, you can pay a small fee to have that included.

Some credit cards provide you with your free score so check if that is available to you. But don’t open a new account just to get your score!

A score of 740 or higher should qualify for the best mortgage rates. Anything below 640 is going to make it difficult to qualify.

Get your free copy of your credit report from all three credit bureaus at http://www.annualcreditreport.com

WHAT TO DO IF YOUR CREDIT ISN’T STELLAR

First review your report for accuracy. Check all names listed, including spelling, former addresses and account information. You can dispute any errors to all credit bureaus online.

If all items are accurate but perhaps not favorable, it is best to focus your attention on rebuilding your credit. It’s not always easy but there isn’t anything on your credit report that “time and/or money” can’t fix. There are great resources online or at your local library if you need guidance. For example, Dave Ramsey’s “Debt Snowball Method” advises to make all your minimum payments and focus any available extra onto the account with the smallest balance. Once that account is paid off, add that payment to the next smallest account and so on until you are debt free. Mortgage lenders are also happy to talk with you about ways to repair your credit.

Most importantly, know that no “credit repair services” can do anything you can’t do for yourself – for free.

Negative account information will stay on your credit report for seven years from the date of the original delinquency. Once negative accounts have been paid off, all you can do is wait. It doesn’t take the entire seven years for your score to start increasing but patience is required.

Repairing your credit is simple. Not often easy but simple.

 

Article Source: http://EzineArticles.com/expert/Mary_Barnett/2287038

 

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Avoiding The Pitfalls Of First Time Home Buying

Viewing a house can be exciting. You can imagine yourself living the good life as you would be living on your own home. That said, purchasing your first home could also be daunting and in fact concerning if you ever heard of first time homebuyer’s problems. Aside from moldy insulating panels and infestations, buying a nice home without any problem can be slim and if you are considering a new home, it can be quite expensive and might not fit your budget.

If you are buying or considering purchasing a home, then you might benefit from the following tips below.

Two Eyes are better than one

While you may be impressed by the sweet talk of the real estate agent, having someone with you can help you a lot especially if the agent is not paying attention to that person. Your friend or your relative can help you spot some problems of the house and if they have their own homes chances are, they would be able to check places that can cause problems especially if they experience it first-hand. Second person would also help you make an informed decision as they can also ask questions that you have not thought about preventing you from making a quick decision that you may regret later. Your friend can also take a video or photo of the rooms, window fixtures, furnishings and other details that you may find useful.

The Early Bird catches the Worm

One trick that can really help you decide is to arrive a few minutes early to take a good look and feel of not only the property, but also its neighborhood. This would allow you to see if the place is in good location and safe. If you do not feel safe or feel threatened then it is best to politely decline after the tour.

What you should ask Your Agent

It can be hard to ask questions if you do not know what to ask and as such, it is important to have a checklist of things that you think is important to you. It is also essential that you talk with the agent about the previous owners if it is not a new home. If it is newly built, then ask the agent about the neighborhood, possible taxes, and what the developed land used to be. Some homes are built on reclamation lands that are used to be bodies of water, if it is, then it is important that you know which developer it is and what potential problems one might face.

These are just some of the things that you may want to avoid especially if you are considering buying your first home. If budget is of no issue then you might also hire an assessor to check the house for you. You have to pay some but it will be worth it in the end.

There are some cool apps that you can download to your phone that can help when you are looking for a new property. House Inspector App is a software application that is available for Android and iOS and is a convenient way to view the house.

Article Source: http://EzineArticles.com/expert/Patrick_Laurence/1754394

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