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Improve your credit score before buying a home

One strong indicator of a home buyer’s capacity to afford property is their credit score and credit history. This factor has the power to make or break a deal in a real estate transaction. Sellers will most likely go for buyers who can properly finance the purchase of their home at a price agreed upon by both. And what better way for home buyers like you to prove yourself worthy of a seller’s home than through a good credit score?

A credit score is proof that you are responsible and capable enough to pay the financial obligations related to home buying. The standard score generally accepted by lenders is 700. But scores going 800 and above are exceptional and could entitle you to certain perks like lower interest rates.

Let’s look at how to improve your score before buying a home.

Check your credit history

You must understand that credit isn’t something you can change in a day. It takes time to build credit, especially when you’ve made unwise financial decisions in the past. Be mindful of your credit history, as well as of any debts
you currently have. That way, you can lay everything out before you and see if there’s anything that’s hurting your credit.

Plan and act

Now that you know where you stand, you can write up a plan for paying everything off. Total up everything you owe and prioritize according to payment deadlines. Prioritize paying off debt above everything else. That means putting aside some luxuries for the time being.

Once everything is paid off, decide how you will stay on time in the future for payments. Set reminders for yourself. You can also set up automatic payments so you won’t have to worry about remembering to pay anything off.

A late payment, even if it’s just for a few days, will still negatively contribute to your credit. If you’re really struggling, it may be wise to invest in a counselor or financial advisor.

Become more financially aware of your situation and only spend what you have. Live within your means.

Keep up the good work

Now that you’re all paid off, don’t incur new debt. This will keep your credit score where you want it to be and prevent it from falling in the future. Keep your balances on credit cards low and pay them off regularly.

And speaking of credit cards, limit your credit card accounts to a maximum of three. This is a good number to diversify your credit and enable you to keep track of your dues. Financial experts also advise against applying for new credit cards if you are still in the process of improving your credit score.

Improving on your credit is a good move that will bring you a step closer to the home of your dreams. And if you are on the hunt for a dream home in the areas of Merced, Chowchilla, Atwater, Turlock, and Los Banos in California, then look no further than Soldavi Realty to help you out. Our team of real estate specialists are just a phone call or email away at 209.975.7653 and info(at)soldavi(dotted)com.

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Disclaimer: In today’s real estate market, selling and buying a home requires advanced knowledge of online as well as traditional marketing platforms. Just having a real estate license and listing a home on the MLS is not enough – you want an agent who has their ear to the ground when it comes to market trends, a deep understanding of the communities they serve, and the ability to think outside the box. As part of Soldavi Realty, our agents’ skills go far beyond closing deals. All rights reserved.
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