Nothing deflates a buyer’s excitement quite like hearing those four words:
“Work on your credit.”
You already know, credit is a BIG deal when buying a home. It’s an indicator to lenders about how likely you are to make timely payments on your mortgage loan.
So, if you’ve heard these words or fear you might, don’t stress! Here are a few things to focus on that will have a direct impact:
Keep credit card balances low: The pros say credit utilization should not exceed 30% of your available credit line. Aim to maintain low balances on your cards by paying down your balance ahead of your statement closing date.
Use credit wisely: Avoid opening multiple new credit accounts within a short period. It can indicate financial stress and may lower your score.
Keep old accounts open: Closing old accounts can reduce your overall credit history, which may negatively impact your score. Keep old accounts open if they are in good standing.
Check your credit report: Don’t let errors derail your progress. Put eyes on your credit report every few months and dispute inaccuracies. Most credit cards let you perform a free credit check that’s not considered a hard inquiry.
Want to take it a step further? Grab a copy of my Free Budget Tracker — a tool to ensure every dollar is working hard for you! DM me, and I’ll send it over.
Utah County Homes, The Bennetts 