Buying a home is a major accomplishment. Regardless if this is your first time buying or your fiftieth time buying, becoming a homeowner is a huge milestone in anyone’s life.
One thing that can get in the way of potential homeowners getting approved for a house, however, is poor credit.
So, to help make your dreams of homeownership come true, your local Green Cove Springs contractors, with A&M Home Builders, have listed some useful tips on how to raise your credit score.
Tip #1: Check Your Score Regularly
It is known that people make mistakes, which means it is possible that the credit company could have made an error on your account. If you check your credit score regularly, this will allow you to dispute any inaccuracies before you begin the application process to buy your dream home.
Tip #2: Pay Your Bills On Time
Paying your bills on time is an excellent way to build your credit score. If you have a hard time remembering when a payment is due, make a note on your calendar or set a reminder on your phone to alert you when it’s time to pay your bills. Forgetting to pay your bills on time can cause your credit score to plummet. By setting friendly reminders on your devices, this will help you not to forget when payments are due and will, therefore, increase your credit score.
Tip #3: Pay Off Debt
Focus on paying off as much debt as you can before you buy a new home. Companies want to make sure you will pay back their loan, which means mortgage lenders are more likely to give you a better rate if you are in less debt. Making it a priority to pay off high-interest loans first and avoid keeping high balances on credit cards will help you appear as a stronger applicant during the homebuying process.
Tip #4: Try Not To Open New Lines Of Credit
Whenever you apply for a loan or a new credit card, your score is immediately affected. Now, most of the time, this is only a temporary drop in your credit, however, it is still enough to make a difference when applying for a home. This is why it’s important to hold off on opening any new lines of credit until after you have closed on your house.
Contact Us
Here at A&M Home Builders, we focus on building quality homes for quality people. If you are in the market for a new home or if you would like to receive more tips on how to raise your credit score, please contact your local Clay County contractors with A&M Home Builders at 904-449-1922 or 904-955-1758.
