If you’re about to start your search for homes for sale in Phoenix, you’re going to want to do a little legwork beforehand, so that when you find the perfect house for you, you’re not bogged down by financial woes that might cost you your shot at putting in an offer. The first and most important thing to do is to check your credit score and make adjustments to it that will positively reflect your ability to qualify for a mortgage.
Unfortunately, when many people get around to checking their credit score, they find that it isn’t as great as what they thought it might be, which can lead to a fair amount of panic! Take a look at three things you can do right away to help bolster your credit score and make yourself more presentable to lenders when you’re out putting offers in on homes for sale in Phoenix:
•Have derogatory marks removed: If you’re being haunted by a late credit card payment from years ago or a missed bill payment that’s ancient history, make sure you have these items expunged from your credit report. This is often as easy as calling up the three credit bureaus (Equifax, Experian and TransUnion) and asking them to please remove the mark. If the strike against you is more than a few years old and you’ve maintained good credit since then, you’ll likely have no problem getting it erased right then and there. If it’s a newer mark, you can make your case—if you’ve got a clean record and it’s a one-time thing, you might get lucky!
•Pay off minor outstanding debts: Open credit utilization is a major determining factor of your credit score and having a certain percentage of your open credit tied up might be bringing your score down quite a bit. For example, if your credit line is $10k and you’ve got $2k outstanding debt on credit cards, that’s a 20 percent utilization that will be reflected by your credit report, which is a little on the high side. Paying off $1k of that outstanding debt will drop you down to 10 percent credit utilization, which can bring your credit score up significantly!
•Expand your credit line: One major problem for those seeking homes for sale in Phoenix is having too little credit to be judged on! If you only have one credit card with a $5k limit on it, that’s not going to be enough to inform a lender of your ability to manage debt and credit. Consider applying for another credit card, raising the limit on your existing credit card or signing up for other forms of credit that you can manage effectively. Even doing something as simple as extending your credit line from $5k to $10k overall will do amazing things to your credit score!
Too many prospective homeowners find out too late that their credit score isn’t sparkling enough to warrant them an affordable rate on a mortgage—make sure you’re not one of these unfortunate cases. Paying attention to your credit score early and being proactive in raising it before you’re in a position to deal with the bank is a great way to make sure that you’re able to find and afford the home of your dreams!