When Preparing to Purchase a Home the First Step is getting your finances and credit in order. Mortgage Lenders Review you Credit History, Employment Status, Income and Debt to qualify you for a
Building A Great Credit Profile
I re-built my credit and my husband credit without using Credit Repair from the 500s to the mid 700s. Here are the steps we took.
1. Sign up for Credit Monitoring Service to view your credit scores and credit report (Credit Karma is a great free site you can use) I personally use Score Sense, user friendly and shows you all 3 Credit Scores and Credit Reports.
2. Use their dispute tool to remove negative items that you have no knowledge of. (If the items can be proven to be yours, they will not be removed)
3. We Did Not Pay Any Charged Off Items, We focused on adding positive items to our profile.
4. Sign up for a secured credit card through your bank, using no more than 30% of the limit and pay down each month but never to zero (Capital One has a great Secured Card) Use for small purchases such has gas, grocery items, etc.
5. If you know someone that’s responsible with credit, has a high limit credit card and usage below 30% of the limit, see if they’ll be willing to add you as an authorize user. (They do not need to provide you a card!!) This will help boost your scores and they can remove you later once you’ve built your own positive profile.
6. Pay all accounts on time, late payments and allowing more negative items to hit your credit profile will not help you.
Building a great credit profile can take anywhere from 6 months to a year. Results will vary depending on your current credit profile. But these are things that we did on our own that I wanted to share with you.
If you're thinking about home ownership and need assistance with Credit Counseling, I’d love to help you. I have a preferred lender that I can connect you with and he'll provide you with a plan that will help you get qualified for a mortgage loan.
I purchased my first home as a single mother in my early 20's, so I know the fears, the anxiety and the financial responsibility that comes with such a large purchase. But I also know the pride, joy a....