Most people these days know that their credit rating is an important aspect of purchasing a home. Some people come to the realization later than others. By the time they want to settle down and buy a home, they have already seriously damaged their credit record. If this is a problem for you, there are ways to repair the damage, but they don’t come easily. As a matter of fact, if you try some of the purportedly “quick-fix” methods advertised in the media, they are likely to backfire on you. There’s so much on the internet about this subject, it can be a bit overwhelming. Take it one step at a time.
Check your credit score
You need to request a free credit report for yourself and go over it carefully to be sure there are no errors. Compare your actual payment history with the report, and if any late or missed payments are noted erroneously, challenge the report. Make sure they list the correct amounts that you owe, also. Here is a link to tips on Disputing Errors on Your Credit Report.
The Davis Team’s preferred lender, Kory Cassidy (Senior Loan Consultant for Northpoint Mortgage) can help you with this part of the process. The score for buying a house is different from that for credit cards. Kory can walk you through the process, and he can advise you on which debt to pay down. He has an online application to fill out, and an App which can keep buyers informed of developments. Here is Kory’s contact information:
Kory Cassidy: Senior Loan Consultant
Northpoint Mortgage (a branch of Independent Mortgage Company)
Cell: 678-365-6282 Office: 678-801-8713
Fax: 678-801-8713 Email: email@example.com
790 Peachtree Industrial, Suite 200
Suwanee, Georgia 30024
NMLS #930789 GA Licensee NMLS #35775
Clean Up Your Act
If you actually do have a history of late or missed payments, begin immediately to remedy this. There are several ways you can help yourself here. You can set reminders on your computer, phone, or some other device to help you remember to make payments. You could take advantage of automatic bill payment programs offered by most banks, but it would be better to make the payments yourself so that you can keep track of the flow of your money.
Pay Down the Debt
Another reason for making payments yourself is that you may want to begin paying more than just the minimum payments so that you can actually reduce the size of your debt. First of all, cease and desist in the use of credit cards. Check your accounts online to see what you actually owe. Begin paying off the cards with the highest rate of interest first, and maintain minimum payments in the lower interest accounts. With concerted effort, you will be gratified at the gradual reduction in your debt.
Develop Better Habits
You didn’t just wake up one morning with bad credit, and you won’t do that with good credit. It will take time. For instance, if you have a debt that is in collection, even if you pay it off, it will remain on your report for 7 years. Just begin. Make your payments on time. Don’t keep buying what you can’t afford. Avoid opening more accounts. The longer you pay on time, the sooner your score will improve.
One of the major pitfalls that many homeowners fall into is not saving enough for repairs and upkeep on their homes. According to a recent article on Money.com, many people know they need to budget for repairs, but severely underestimate the amount they should be budgeting.Read the whole article here.
The mortgage process is complex, and probably the most time consuming, turn-your-hair-gray-overnight, tree-killing process you will you ever go through. The avalanche of paperwork, the strange vocabulary, and the sea of acronyms is enough to make anyone stick to renting for the next 40 years. Read the whole article here
Once your credit is in good shape, the Davis Team can help you find just the right home to buy! Please contact us at DavisTeam@KW.com, or visit our website:www.eastgeorgiahomes.com. We can help make your next move a rewarding and positive experience!