Do You Know Your Buying Power?

Buying a Home   Know your Buying Power!

 

Financing and Your Credit Score

Credit is an important component in helping you find the best loan product to meet your home-buying needs. The way you handle credit obligations can greatly affect your loan choices and the interest rates you can get. In short, the better your credit, the more loan options you will have when choosing what’s best for you and your financial goals.

If you're in the market to buy a home, and you want to make sure you're doing everything you can to maintain good credit, here are a few tips:

  • DO pay what you owe – regularly and on time.
  • DON'T skip payments.
  • DO have a checking and a savings account.
  • DON'T hold more than four credit cards.
  • DO sign up for automatic payroll deposit with your employer.
  • DO keep your total debt-to-income ratio under 36 percent. 
  • DON'T exceed or continually increase your line of credit.
  • DO keep track of your spending and stay within your budget.
  • DON’T continually open and close accounts; maintain a constant profile.

Your lender will view your credit report when determining which loan products are best for you. Using your credit history, the credit bureau will develop a credit score. The higher your credit score, the more likely you are to qualify for a loan with the best interest rates and product features.

Not sure where you stand?
It's wise to obtain a copy of your credit report at least once a year in order to find your FICO score. You can obtain your report for free once a year from each of the three major credit bureaus at 
www.annualcreditreport.com. It’s especially important to figure your score before making a large purchase, like a house or a car, in order to review for accuracy and find out how you can work on improving it, if necessary. 

 In that report, you'll see the consumer credit given to you over the past seven years and be able to check your highest balance and current balance on outstanding debt, as well as see details about on-time and late payments and collections. Your home mortgage consultant should be able to help you better understand what your score means.  

You can get your credit report from many sources, but should you find something in your report that may be inaccurate, only the credit agencies can actually correct the data on your report. Contact the three major credit agencies directly: 

Equifax: (800) 685-1111 or www.equifax.com 
Experian: (888) 397-3742 or 
www.experian.com 
TransUnion: (800) 916-8800 or 
www.transunion.com

As for less-than-perfect credit, you should know that lenders typically are more concerned with how you’ve handled your recent credit than with what happened years ago. But even if you have a blemish on your credit history, don't let that stop you from buying a home. Buying a home – and paying your mortgage on time each month – is a great way to rebuild your credit.

For more information, visit www.LisaSellsTexas.com

 

 

www.LisaSellsTexas.com

 

Lisa Von Domek

 

Lisa Von Domek
BROKER/ASSOCIATE/REALTOR, 
ABR, AHWD, ALHS, ASP, BPOR, CAPS, CDPE, CGP,
CLHMS, CMS, CRS, CSP, e-PRO, GREEN, GRI, MRP, PS, QSC, SFR, SRES, TAHS, TRC
Lisa Von Domek & Associates, LLC / Real Living Real Estate Group 
Phone:      972-849-1300 
Email:        Lisa@LisaVon.com      
Website:   www.LisaVon.com

Multi-Million Dollar Consultant

Texas Licensed Real Estate Broker

 Accredited Buyers RepresentativeAccredited Staging ProfessionalAt Home With DiversityCertified Residential Specialist  Certified Aging-in-Place SpecialistGraduate Realtor Institute      Certified Distressed Property Expert  e-ProSenior Real Estate Specialist      GREEN Realtor             Military Relocation ProfessionalShort Sale and Foreclosure CertifiedTexas Affordable HousingTransnational Referral Certified       Institute for Luxury Marketing        Certified Luxury Home Marketing Specialist  ALHS  AR Top Contributor     Wounded Warrior Project

 

 

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Lisa

Information, written commentary, photos, original verse, etc… are the property of this author and may be reprinted or posted for Active Rain.

Comment balloon 33 commentsLisa Von Domek • February 17 2018 04:22AM

Comments

Lisa what an awesome post and this is universal for all buyers, they all should be reading your post, Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) almost 2 years ago

Morning Lisa.

I haven't checked my credit score in three years.  Think it maybe time to run it?  

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty) almost 2 years ago

It's right whee it should be....Yaaah !

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) almost 2 years ago

Good morning Lisa. Everybody should read this post and follow the advice given. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) almost 2 years ago

This is an excellent post for buyers everywhere.  Great advice.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) almost 2 years ago

Hi Lisa... I am often amazed at how little people know about their financial situation. Had a call from a prospective client yesterday who has two properties to sell and who had no clue about what his mortgage balance was on either one.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage ) almost 2 years ago

Thank you for sharing this great information.

Posted by Golden1 Agents almost 2 years ago

Lisa credit scores are one of the most critical components of being able to obtain financing to purchase a home.  Buyers need to do everything possible to make sure their scores are as high as possible.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 2 years ago

I haven't seen a credit report in about a year so it's time to check that all is alright even though we have LifeLock looking after things.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) almost 2 years ago

Thank you Endre Barath, Jr. I appreciate the lovely compliment!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

Yes James Dray and I hope that you did so today!!!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

Isn't that a great feeling Sally K. & David L. Hanson ?!!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

Thank you Wayne Martin in today's world of cyberthiefs, you can't be lax with monitoring your credit!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

Thank you Nick & Trudy Vandekar, 610-203-4543 I appreciate that!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

And yet we are not surprised, are we Nina Hollander 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

Thank you for stopping by to read and comment Golden1 Agents I am pleased that you liked my post!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

So true George Souto and following simple, common sense steps make having a good credit score relatively easy!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

Debbie - Lifelock is good but I agree with you, time to check it for yourself!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

Wonderful advice for all buyers, Lisa. It always surprises me that buyers think they can skip this step and go right to house-touring! This is something that we should all be mindful of every day of our lives.

Hope you're having a great weekend!

This is also a great one for @Carol Williams' feature list... 

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) almost 2 years ago

I find that most people don’t know the power that they have most times, and real estate is just one part of that.

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) almost 2 years ago

Debe Maxwell, CRS One of the things I really love about this blog is how many people are helped!

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) almost 2 years ago

Good  morning Lisa Von Domek ,

Glad to see this post featured! Well deserved. Everyone should read this because knowledge is power and this well laid out post is on point to understand your buying power!

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.750.6899) almost 2 years ago

Its not like a trip to the Mall where we window shop. You must qualify to shop for Real Estate. 

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) almost 2 years ago

Hi Lisa

This is valuable information for anyone considering buying a home...or getting credit in general. Seems like many really do not understand their credit and how what they do, or don't do, impacts it.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) almost 2 years ago

Lisa, One thing I heard about ways to improve credit scores is to pay credit cards, mortgage payments, before they are due.  I played around with this and have to say I believe it is true.  

Posted by Kathleen Daniels, San Jose Homes for Sale-Probate & Trust Specialist (KD Realty - 408.972.1822) almost 2 years ago

Thank you Debe Maxwell, CRS absolutely...credit first, house hunting second!

Hope you have had a great weekend!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

So very true Laura Cerrano 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

Thank you Dorie Dillard it is always a thrill to have a Featured post!

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

Absolutely true Richie Alan Naggar no window shoppers or tire kickers in real estate! 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

Thank you Jeff Dowler this subject is too important to be neglected.

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

I have heard that as well Kathleen Daniels and I would think it would be a factor.

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 2 years ago

Really great and informative post Lisa! I recently wrote about something very similar. Maintaining a consistent profile and not continually closing and opening accounts is a must for buyers!

Posted by Sharon Mistowski, Horizon Lending Services, LLC (Horizon Lending Services, LLC) almost 2 years ago

Great info for everyone to possess Lisa Von Domek, but especially those thinking of entering into a home buying or financing process in the future.  A very valuable share of info ...

Gene

 

Posted by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience (NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656) almost 2 years ago

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