Beware buyers – Your low credit score will make it impossible for you to get your mortgage loan approved and if by chance it does get to the lender’s desk, you will be charged a very high interest rate. If you are planning to buy a home for sale in Sandy Springs, GA, then you need to fix your credit report now! It can take anywhere between 6 months and a year to increase your credit score, so better start taking actions.
We have got a few tips for you that will help you improve your credit score before applying for a loan:
1. Get Your Credit Report
First order of business is to find out if your report has any discrepancies. There are two reasons behind a low credit score: a false charge was added to your credit report accidently, or you are behind on your bill payments. You can get free copies of your credit report from agencies such as Experian, Equifax or Trans Union.
2. Pay Your Debts
Stating the obvious and easier said than done, but your skipped payments are what lower your credit score really fast. Don’t wait until the final notice to pay the bills because this will lower your credit score day after day. Why not set personal reminders to make sure that you pay every penny on time. Moreover, most people skip a month’s payment thinking that they will pay two months’ bill down together. Don’t make this mistake!
3. Sever Financial Ties
Do you have a joint account? If the other account holder doesn’t maintain his credit score, then you will be affected too. This will lower your chances of getting a mortgage loan for the home for sale in Sandy Springs, GA.
4. Don’t Open another Credit Line
The problem with opening more than 2 credit lines is that you are never able to pay the credit down on all of them. Do not go purchasing big home appliances before you have bought the house. These purchases will show on your credit report and will make the lender question whether you will be able to pay back the loan or not.
5. Pay the Loans with High Interest Rates First
Once you have paid the small bills, look at the balances on the report. Put the ones with the high interest rate at the top and pay them first. This will allow you to save money because if these loans mature over a long period, you will go bankrupt.
While buying a house is not a difficult process, securing the funds for it is what takes time. You need to shop for different mortgages before getting the pre-approval letter. This shows the seller that you are a serious buyer. If you want to find quality listings, then visit America’s Network Realty Group Inc. Enter just a few details on the type of home for sale in Sandy Springs, GA, you are looking for, and the database will provide you with hundreds of listings.