Improve Your Credit Score Before Buying a Birdland Pleasanton CA Home

Improve Your Credit Score Before Buying a Birdland Pleasanton CA Home

As we experience a boost in the real estate market with more and more consumers looking to purchase their first-ever homes for sale in Birdland Pleasanton CA, it’s important to determine exactly how your credit score affects your home-buying capacity. 

The entire process of buying a home begins long before you start the home search. It’s a long road towards finally moving in and setting foot inside your own home and one of the first steps to take is figuring out your finances.

Mortgage lenders usually require a FICO score of 720 or higher. Some lenders want a 740 score but for those with scores below 700, you may still qualify for an FHA loan. 

Keep in mind that the lower your credit score is, the higher the interest rates you’ll get when applying for a loan. This is mainly the reason why real estate agents suggest buyers to get pre-approved for a loan first before buying a home. This way they can determine exactly how much they can afford when they buy a home.

Whether you’ve got a good credit score and you’re looking to keep it that way or you need a major overhaul on your finances, here are some ways to help you improve your credit score before you buy a home for sale in Birdland Pleasanton CA:

Review your credit report. 

Get your hands on a copy of your latest and most updated credit report. Under the FACT Act, you’re entitled to one free report once a year from each of the three credit bureaus. All you have to do is go to the Annual Credit Report website to request for a copy. Make sure to review your report for any errors or inaccuracies, keeping in mind that event the tiniest misplaced decimal point can cost you hundreds to thousands of dollars. 

Pay down or pay off any credit card debt.

Compared to auto loans or student loans, credit card debt weighs your credit score down significantly. Aim to keep your credit card debt at no more than 20% or 30% of your total available credit limit to help boost your credit score. Pay off the ones with the highest interest rates and late payment fees first.

Lose all debt, don’t just move it around.

Some people who have huge credit card debt take another credit card and use the available credit there to pay off their other card, therefore incurring additional, and possibly higher, debt on the new one. Some banks let clients shift their balances between cards but there are huge fees involved. So instead of acquiring additional debt, pay off the one on the card you already have to help boost your credit score before you buy a house for sale in Birdland Pleasanton.

Pay your bills on time all the time. 

This goes without saying but paying your bills on time is the best way for you to boost your credit score. Never miss any payment and try to pay more than the minimum fee required.

Buying a home can be a pleasant experience. By simply following these Realtor® secrets to boosting your credit score before buying a home, you’ll soon find yourself living in your dream home with a mortgage you can actually afford. Get more helpful advice on buying and selling homes when you visit http://RhondaFee.com.

If you are looking for a Pleasanton CA REALTOR® who can help you sell or buy your dream luxury home, call me, Rhonda Fee, at 925-200-0827. You can also text 925-660-7110 with any of these codes: seller411, buyer411 or homesearch. With my extensive experience and knowledge of the Pleasanton luxury real estate market, combined with a track record of satisfied clients, your next transaction will be the best move you’ve ever made!