Posted by Sandra Tessier on 4/10/2018

One of the most important factors that many home buyers face is that of their credit score. You have the right to get one free credit report per year. There are also many different apps and websites that keep you updated on your credit score and any changes in your credit report. These programs even guide you in how to improve your score. 


Why Do We Have Credit Scores? 


A credit score is a number that shows how creditworthy a person is. Lenders look at this score in order to assess how risky a person may be to lend to. This lessens the potential risks that the lender may face, keeping people who may be at high risk for defaulting from securing a loan in the first place. 


What’s A Good Score?


Credit scores range from 300 to 850, with 850 being the highest score that you can get. A credit score of 700 or above is considered good. A credit score above 800 is seen as excellent. The bottom line is that the better your credit score is, the more reliable of a borrower you will be seen as by lenders. 


If your credit score is less than stellar, however, you need to get to work so that you will be able to get loans in the near future. Here’s some steps that you can take to improve your credit:


Pay Off Outstanding Debt 


If you owe anything on medical collection accounts, credit cards, legal judgements; basically any debt that will show up on your credit report, you need to pay these off. Getting rid of debt can help you to increase your credit score more quickly. 


Rebuild Your Credit


You’ll need to keep up any accounts that you have with good payment history and maintain the good work. You should be diligent to maintain those on-time payments for an increased good payment history. Even if you have accounts that have had late payments previously, you can still work to get the accounts back in good order. 


If you don’t happen to have any existing credit accounts, you’ll need to get one in order to begin establishing credit. A good way to do this is to apply for a credit card and only charge what you can afford each month in order to help establish a credit history.     

Look At Your Whole Financial Picture


Aside from your credit score, you’ll need to take a look at your bigger financial picture. Everything from the amount of savings that you have available to how much of a home you’ll be able to afford is important. You need sufficient income so that you’ll be able to buy a home and provide a down payment along with money to pay closing costs. 


Once you start investigating your credit score and how to improve it, you’ll be on your way to better financial health.





Posted by Sandra Tessier on 8/2/2016

Unfortunately, many homeowners have gone through a foreclosure in recent years but that doesn't mean that future homeownership is out of the question. Hard work and discipline and these tips should have you on the road to homeownership again soon. 1. Keep a steady job Potential lenders will need to see stable employment before they’ll approve a mortgage loan after a foreclosure. 2. Build your savings Rebuild your savings account. You will want to establish a minimum of six months of living expenses in a liquid account. Mortgage companies will want to see you have a cushion to pay your bills. 3. Work on your credit score After foreclosure, your credit score probably dropped by about 150 points. Rebuilding your score will take time, hard work and perseverance. Pay all of your bills on time and make sure to keep your credit card balances below maximum levels. It is best to have the balance less than half of the available balance. If you stay disciplined and positive, the American dream—obtaining a mortgage and owning a home of your own—can, indeed, be yours again. Even after foreclosure.