Main Line Homes Blog

head_left_image

Buying a home; protect your credit score!

We are seeing more and more buyers and sellers frustrated as mortgage companies refuse loans based on bad or even low credit. This devastates buyers who see their dream of buying a home and participating in the American Dream smashed. Sellers who have not asked if the buyer is qualified either through ignorance as a for sale by owner, or using an agent who is not experienced enough to ask for mortgage approval and financials are also affected as their home has been off the market and may have missed a qualified buyer in that time.

This bad credit can be for a variety of reasons, not least having your identy stolen, which it is important to protect, divorce, health issues but much of it is ignorance at what makes up your credit score. Making payments punctually, the ratio of your credit card debt to your credit limits, years of credit experience, type of credit on record and recent searches of credit record and the number of accounts recently applied for all affect your credit score to differing degrees.

Some simple ways to improve your credit rating, over time, is to pay all bills on time, all the time; do not use all of your available credit, and pay off your debt, don't move it from card to card. While this will help your score to go up, it won't happen overnight, so be prepared to make changes well ahead of when you want to buy a home.

Also mortgage companies are starting to insist that buyers have a down payment towards their future home, so start saving. however much you can save begin with that. I once read that if you begin to save you will start to save more as you see it grow, you add little bits to it. Make some cuts in your budget, skip that caffee late and put the money in a savings account, put your loose change into a bowl or bottle and when you get a cash back offer on a purchase put it in your savings. Pay yourself first each month and live off the remainder of what you earn. Start with maybe 5% of your earnings and put it in a savings account on an automatic payment schedule, before you know it you will have a fairly large sum and may even feel comfortable increasing your savings amount to 7.5 or even 10% and living off the rest.

So, remember if your plan is to buy a home, protect your credit, make those payments on time, pay off your debt, and start saving.

 

If you are buying or selling on or around Tredyffrin Easttown or along the Main Line we can help you,  contact us or connect

  Twitter link  Linked in linkl our blog RSS feed of MainLineHomes Blog

Feel free to subscribe to our blog to stay up to date with our latest posts and information on the Tredyffrin Easttown and Main Line Real Estate Market. 

 

Comment balloon 0 commentsNick & Trudy Vandekar, 610-203-4543 • September 03 2008 04:13PM
Buying a home; protect your credit score!
share
We are seeing more and more buyers and sellers frustrated as mortgage companies refuse loans based on bad or even low credit. This devastates buyers who see their dream of buying a home and participating in the American Dream smashed. Sellers who… more
Berwyn Devon Business & Professional Association launches new web…
share
If you own a business or work for a non-profit or are a professional in the Berwyn Devon area you should know that the Berwyn Devon Business & Professional Association just laucned a new web site. Designed to keep members informed and to… more
The Iraq movies
share
Here are the movies that Jeremy our son made for each month he was in Iraq, as posted on you tube in chronological order. Each portrays a month of their deployment, some are longer than others, there is some humor through out but also some typical… more
Old Forge Crossing new listing
share
Well I was just getting worried as I had no active listings and I have customers looking for homes. This last week has been busy, several listing appointments, let me tell you our market is busy. If your home is not selling then you need to find out… more
Can a Reverse Mortgage Help your grand child buy their first home?
share
I asked Eric May and Donald Geragi of Prosperity Mortgage who recently spoke to us at Long & Foster in Devon to share some information about reverse mortgages, how they work and who can use them. This is a great way for seniors to provide income… more
In this market should you build?
share
In every market there are ways to save and make money. Even during the Dreat Depression there were people were making lots of money. So here we are in a market continually described as the worst housing market for several decades. If you have funds… more
Treehouses and childhood dreams, fantasies and treehouses…
share
To me, childhood dreams, fantasies and treehouses are directly linked. As a child I always dreamed of owning a tree house, a big one, one where elves could live nearby, high up so that it is all hidden in the leafy branches away from… more
Touching local people.
share
This past Friday our office took part in our company's community service, offering our time to a local organization that I hold in high esteem Surrey Services for Seniors. Of course I forgot my camera and we did not take any photos, but we helped… more
So how good is your Real Estate Agent?
share
When choosing an agent to represent you what should you be looking for? Professionalism, integrity, skill yes they should exhibit all of these but what else? Is your agent working at this full-time? Do they know the market and the price… more
More and more homes coming on the market
share
After many months of low inventory in our area, Radnor, Tredyffrin and Easttown townships in Pennsylvania we are seeing an abundance of homes being placed on the market. Amazingly in our area we are also seeing a large number of homes for sale by… more