We all know that creditors want to see good things on your credit report before they’ll agree to lend you enough money to buy a home – but if you’re like most people, your credit could stand a little polishing-up.
While a big overhaul will likely take some time, there are a handful of things you can do to repair your credit so lenders look at you a little more favorably when it’s time to apply for a mortgage loan.
How to Repair Your Credit Before You Buy a Home in N. Florida
The first thing you’ll need to do is get a copy of your credit report. You’re entitled to a free copy each year, which you can obtain for AnnualCreditReport.com or by calling 877-322-8228.
Once you have that, you can get started.
1. Make sure your credit report is accurate. If you find anything out of order, such as a debt that you don’t owe or a loan you didn’t take out, report it to the credit bureau. Sometimes personal information gets mixed up when creditors are reporting debts, so it could be an honest mistake.
2. Determine where you can trim down credit card balances. Sometimes paying down a few hundred dollars in debt can push your credit score up significantly, so it might be a good idea to evaluate how much you owe and start making larger-than-usual payments. The best thing you can do is to use 30 percent or less of the credit you have available to you.
3. Don’t try to get closed accounts removed from your credit report unless they’re negative. Good debt is good for your credit, and the longer your history of it is, the better your score will be.
Is Your Credit Ready to Buy a North Florida Home?
If you’re eager to get started, please check out our listings of North Florida homes for sale. Call us at 386-243-0124 and tell us what you’re looking for so we can begin searching on your behalf; if it’s easier, contact us online to let us know.
