Ways to Fix Your Credit to Buy a Home in Montrose, Colorado

Are you preparing to buy a home? If so, there are many things that you will want to have prepared before signing on the dotted line!

From having a down payment ready, to getting a mortgage loan, you will want to ensure that you are entirely ready to purchase a home. However, one of the most important aspects that you will want to take into consideration is your credit score.

We know just how important it is to have a good credit score if you are going to purchase a home! That’s why, here at Glenn Steil Style Real Estate, as a Montrose real estate agent, we have gathered some tips to help you with fixing your own. So, ii you are all set to take in some great insight, be sure to read on:

·         Making Payments on Time. When lenders review your credit, one of the first things they will check is if you have been making your payments on time. Whether it is a personal loan, or a credit card, know that making payments on time will greatly affect your credit score. Therefore, understand that payments that are made late, and paying less than the minimum amount due on timed payments, can negatively impact your credit score. So, you will want to have accounts that you have maintained in a responsible manner over a length of time, as a way to impact your credit score positively.

·         Good Credit Utilization. The credit you have available and how much of it you are actually using is known as your credit utilization. Overall, it is best to keep your credit utilization ratio at no more than 30%. So, for example, if you are approved to borrow $10,000, it’s best to only borrow below $3,000. To keep you credit utilization ratio in good standing, you will want to pay off your balances early, but keep your accounts open. Also, know that it would be best to increase your total credit available, so that you can build a credit history.

·         Diverse Credit. Lenders typically like to see a variety of credit sources when viewing credit scores, as it shows that you can manage a variety of accounts responsibly. So, know that if you by have multiple accounts, such as loans and credit cards, you can increase your total credit available.

·         Red Flags. If you are going to apply for a mortgage, you will want to maintain a stable credit score and history. So, it would be best not to open or close any accounts nearing the time that you start applying. By applying for new credit, it shows up as a “hard inquiry” on your credit history, which can impact your credit score negatively. In addition, by applying for new credit, you could have lenders thinking that you might be experiencing financial difficulties, which would not look good.

Being prepared to buy a home by having a good credit score is certainly of importance. These are just a few pointers to assist you with fixing yours!

Would you like to work with a real estate agent in Montrose, Colorado to buy or sell a home of your own with? If so, please contact us here at Glenn Steil Style Real Estate, as we are all set to be yours!