Written by Carmen Isais
“It is a buyer’s market out there.” How many times have you heard that statement over the last several months? While, yes, it is true, that the recent market decline ion home prices has made property ownership a tangible reality for many people who were at one time priced out of the housing market, also true it that the same catalyst that has created the housing market decline is what is now over correcting and keeping so many new buyers out.
To put it simply, money is hard to come by. The good news is HOMES ARE SELLING. The American Dream is still for sale… to qualified buyers. Let’s get you qualifying with some of these tips.
- Pay down you credit cards: How much? According to my Mortgage Broker friends, paying down you cards by slightly more than 50%, and keeping the balances under this amount can add up too 100 points to your score.
- Avoid “same as cash” offers: Offered many times as furniture stores and electronic depots, these type credit lines are considered higher risk than conventional credit cards will will effect your credit rating accordingly. Does this that mean you should never take advantage of these, sometimes, very good offers? No, just know how it works, and perhaps wait until after the close of escrow to open this type account.
- Pay your bills on time: Seems like a no brainer, but you’d be surprised. If you’re the well meaning but disorganized type, ask you bank about automatic bill payments that go out electronically. This can save you time, hassle, and your credit score.
- Pay off debt, don’t just move it: I know that saying yes to that Zero percent interest rate seems like a good idea, but unless you are going to close out the first card (but wait, now you’ve just closed part of your credit history!), this could come back to bite you. Why? Having too much available credit on multiple cards is more likely to lower your score than having the same amount of debt from fewer companies.
- Keep your cards open: Don’t close unused cards, and in fact, use then every once in a while for small purchases that you pay off at the en of the month. This will help retain and build a longer credit history.
For more help or ideas on reaching your real estate goals and how improving your credit can get you there… call me, Carmen, who can get you connected to just the right person. I’m here to help. 530.601.1003 .
