Is your credit in need of repair? Here are a few tips to help you clean it up.
I routinely work with clients who have blemishes on their credit report that they didn’t even know were there. Perhaps they had a bankruptcy or foreclosure; they’d owned property at the height of the market, but just couldn’t keep it; or they lost their job or had a rough transition between them. Though our current market is good, this still happens with alarming regularity—especially given the threat of identity theft in this day and age.
Now that we’re about 10 years past the last market crisis, those types of things are starting to fade away from credit reports. For typical bankruptcies, for example, you can buy property two years after filing. If you had a foreclosure discharged, you can buy property roughly seven years after the fact.
“Typically, scores in the 600s or higher will qualify you for a loan program.”
But if you think you have a detractor on your credit report, here are the steps you can take:
1. Check your credit score. It might surprise you by being even higher than you think!
2. Fix any errors or dispute any activities that aren’t yours.
3. Pay down your credit card balance. Credit companies will look at how much available credit you have and compare it to how much you use, which includes HELOCs. If you have a high balance on a bunch of credit cards and you’ve been saving some money for a down payment, it might make sense to do a lower down payment and use some of that to pay down your balances. That way, you can increase your score and qualify to buy more home.
Typically, scores in the 600s or higher will qualify you for a loan program. And if you want your score to be even higher, talk with a mortgage lender about further steps you can take to improve your score.
For any questions you have, feel free to reach out to me. Though I’m not a lender myself, I’m happy to talk you through different scenarios and to put you in contact with a great lender. Hope to hear from you soon!
At Keller Williams The Trembley Group, we pride ourselves on being the experts at more than just selling real estate. We are local residents, some of us have been here for a lifetime. The rest of us will be here until the end of time. We love living, working, and playing in the diverse backyard of Coastal Carolina, and look forward to helping you live and love your dreams soon too. Please reach out to us by phone or email for personalized service and one-on-one advice.