As a home buyer, there a few simple things to remember when it comes to keeping your credit in good shape and avoiding any setbacks.
Today I’m joined by Joe Mahlow of ASAP Credit Repair to answer some common questions we get from first-time home buyers about maintaining a good credit score and how credit impacts their ability to buy a home.
What can you do to make sure your credit is in good shape? A good idea would be to pull your credit report three to four times a year. This way, you can see what types of things are on your credit report and a credit repair company like Joe’s can evaluate it and let you know what they can do for you.
What can negatively affect a credit score? A High credit card balance is one thing that can always affect your credit score. Joe always recommends keeping your balance at 30% or less than your limit. He also recommends not having too much credit. Typically, having three to five open installments or revolving accounts is great, but anything more than that can also hurt your credit.
ALWAYS KEEP YOUR BALANCE AT 30% OR LESS THAN YOUR LIMIT.
Do first-time home buyers have enough credit to buy a home? If you have limited credit, Joe recommends that you open a secure credit card and keep the balance at 30% or less than the limit. If you have credit established, a lot of lenders look for a 620 middle score. Every loan program is different, though, so it’s always good to get your score up as high as you possibly can and not have too many accounts open at one time.
If you have any questions for Joe, you can reach him by phone at (281) 545-5001, or you can email him at firstname.lastname@example.org.
As always, if you have any questions for me, please feel free to give me a call or send me an email. I look forward to helping you!