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Boost Your Credit Score Before Buying A Home
Buying a home for the first time is a big step. One of the first things you need to do is find out where you stand in terms of your credit score and your financial health. It's not enough that you make good money. You also have to prove you are creditworthy. Banks will look at both your credit score and your credit reports to determine whether or not you are worth the risk when it comes to a mortgage. Our real estate agents can offer sound advice on improving your credit score and increasing your odds of getting pre-approved for a mortgage.
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Make payments on time – Making your payments on time every month shows that you are financially responsible. Schedule your payments so they come out of your account on time every month. This ensures they will always be on time and in full. No more late payments mean a higher credit score.
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Increase your credit limits – Increasing your credit limits will lower your debt-to-income ratio. This will improve your creditworthiness in the eyes of the lenders who you want to apply for a mortgage with. If you are in good standing with your creditors, many will increase your credit limits without too much hassle.
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Make more than the minimum payments – Making more than the minimum payment each month will pay down your debt faster because you will be applying more toward the principal instead of the interest. Even if you can't do it every month, applying extra money to your payment will pay off in the end. If you are looking at Bergen County homes for sale, this will be a good way to improve your credit and boost your scores.
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Go over your credit report a couple of times a year – Everyone is entitled to a free credit report once a year from all three credit bureaus. Ask for your free copies and go over your credit report carefully. You can even download apps like CreditWise and Credit Karma to monitor your credit scores throughout the year. Keep an eye on items that you are unsure of and place disputes on any potential errors or inaccurate information.
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Dispute potential errors – Errors are not uncommon when you are examining your credit report. If you notice any type of inaccuracy or would like to have something removed, call the credit bureau and place a dispute on the item. You can also call the creditor and ask them to have it removed.
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Add phone/utility bills and subscriptions to your credit report – Your subscriptions, phone bills, and utility bills are items you are rarely late on and always pay. Adding them to your credit report can boost your score by several points. The longer you pay them on time, the more points you will earn.
Trying to improve your credit score can be a little overwhelming. It will take time, but the effort you put into it will be well worth it in the end. If you have questions, contact our agents, and we can answer your questions and give you the sound advice you can count on. Before you know it, you will be closing on your new home!
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7 E Central Ave, Unit 15, Pearl River, NY 10965Phone: 800-ASK-JOYCE (800-275-5692)
