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Fix your credit when you want to buy a home. Bad credit almost always creates complications when trying to purchase home. You can improve your credit report and raise your credit score. Here we share some tips.
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Before buying a new home, your head must be flooded with so many questions. Like, how can I repair my credit score? Do I have to take assistance from a credit repair agency? Will I be able to do it by myself? Do I have to pay off all my old debts to buy a new home? Etc.. Don’t worry! The following will clear all your queries and gives you the best solutions to buy a home of your dreams. What score do you need to achieve to by a new Home? People are fighting hard to get a 700 credit score or even more than that. Although, there are some mortgage loans in which you need to have 640 scores and lender will a very low payment from you. In some cases, you don’t have to give any payment. Also, there are some loan programmes which does not require a credit score. In some cases, a 600 credit score is enough to get a loan. Some of the examples are real estate loans, transactional funding etc. These examples clear that real estate investors do not require great credit even if they have great credit. They think and take a wise decision before investing their personal or business fund. Keep in mind that a great credit score derives the best rates on everything. It will save your money to invest in something else. Good Credit or Good Credit Score? People misunderstood that they have to score well to get a loan for their home. But this is no just about scoring high in the credit report. Alone credit score won’t buy you a house. You will still not get a loan and there are various factors behind this. If you have an average score, you can still get a better loan. Suppose you have 600 plus credit score but you are just declared as a bankrupt. No one will lend you a loan. These factors will come in the loan approval path and therefore, no will approve a loan for you. There are other factors which are involved to get a good credit score which is as follows:
1. Trade lines 2. Credit history 3. Payment shock 4. Debt-to-income ratio 5. Used and unused credit amount The guidelines are different in every lender and mortgage programmes. Some of them need a lender to open 3 active accounts for at least two years with a balance of $1,500 or more. In most of the cases, one of the biggest barriers to maintaining a good credit score and loan approval is the reduction in positive credit. It is not always the negative items present on a report. This is your biggest barrier. You have to fight it out to build a good credit report. First, obtain a secure credit card to begin or you may request a credit line to boost with current creditors. The biggest challenge for the borrowers in this field is to clear high credit balances. Make sure you have to maintain a balance under 30 per cent of the respective credit limit. This will take time to appear on the credit report. Do I have to take assistance from a Credit Repair Agency? Credit repair services are very helpful. But they have a well-known reputation. They are accused of looking up for borrower for the longest time and charging for the same. But this is not the case everywhere. It is tough to segregate the good and bad things. Sometimes, the attorney helps in a bigger
way. Check the Credit Report To get a home mortgage loan to buy a house, it is necessary to check the credit report. Have a word with the real mortgage broker and get your credit checked. You have to work with them and need a great plan. Reference: https://medium.com/@cashbayworkingcapital/buying-a-home-the-real-deal-on- repairing-your-credit-b83e9be9c27a
