Tag Archives: down payment

Tips on improving your Credit Score

Tips on improving your Credit Score

Key to having a great credit score is to make your payments on time, esp credit cards.

Your biggest ally (healer) is TIME! Time heals all with credit scores but you need to make payments on time and above the minimum balance.

Ways to improve your credit score:

  • Get a credit card and have it link to a bill like a cell phone and/or gas bill, and only use that credit card to pay that one bill. Set up automatic payments so that the monthly bill will automatically charge your credit card on file. Don’t use the card for anything else lock the credit card away in a lock box or desk. Every month as you making payments your score is going up. – Don’t abuse those credit card keep those balances low
  • Debit cards from your bank that you use with a pin number do not count towards your credit score because this money is coming directly out of checking out and no line of credit is giving to you. So debit cards do not help to improve your credit score.
  • Try to get another credit card and repeat the process this time use a different bill like car insurance and gas, and think of this credit card as vehicle only use. Gas / Car Insurance / Repairs – you will need a minimum of three credit cards.
  • If you have a family member with a great credit score and is welling to add you to their account and the family member can hold on to the credit card to be on the safe side to make sure the card is not being miss used.
  • When you are about to buy a house do not make a large purchase like a car, because now the bank has to redo your file, and now you bought a car that has no credit history, no payments, and is a full balance, another thing to remember once the car loan is paid off the account will close and the payment history will close with it, and over time the credit score will drop. So that is why it’s a good idea to have three credit cards on file.
  • How do companies fix my credit score? They sent out 100’s of letter asking to prove that discrepancy on the account and if they can’t prove it by responding to all 100 letters than they have to remove the discrepancy on your account and they process repeats, sometimes this take months to work.
  • Mortgage Companies take the middle of the three credit scores from the credit bureaus = (Equifax, Experian, TnasUnion) // Car Loan Companies usually only go with just two bureaus and use the better of the two.
  • Don’t forget to check your credit score by getting your free credit report

Tips for a Home Loan – Mortage

Here are some tips for getting a Home Loan – Mortgage.

Since the mortgage crash around 2006 – things have gotten harder to get a mortgage. Bad loans giving to people that couldn’t afford the home to begin with. Fraud on the loan docs as well didn’t help, appraisals coming in higher than real value, Mortage Brokers doing creative paperwork, and so on. Trust me it’s easier to get a loan on a car than a house. But the dream of owning a home is still out there:

Prepare to be asked alot of question, I mean a lot of question and paperwork needs to be copied and sent over to them. They are going to want all your personal information and paperwork to back it up like Credit Score, Down Payment, 2 years of taxes, Check Stubs, W-2, Driver License, Bank Statements, you might even need to get letters from your bank with a checking account and/or savings. Then if you are married then you can repeat this process for two, if she is going to be on the Mortgage as well.
If you have a scanner at the house with internet connection you will save a lot of time and headaches.
You can start saving and naming these files to your PC to save you some time later on.

Start getting everything ready now and keeping it all together so the process will be easier. As your bank statements come in and check stubs, start saving them in a safe place. When you do your taxes start putting your taxes in a special folder with your W-2 as well.

Credit Score – Start looking over your credit score and credit report, do you notice anything wrong or even missing? Hopefully your score is over 700 and also make sure you have 3 lines of credit on your account. This will build your credit as well. If something is wrong take the step now to fix it, do your research. TIP: if you getting a car DON’T not till you have the house first.

Down Payment – some banks want 10% others want 5% depending on the bank/lender and your file.
If you are buying a house for $100,000 then you have to put 10% down then you need $10,000 in cash for the down payment.  If you have to borrow this money then a few more question are asked.

Always get a second quote try a well known local bank and then a well known lender of home loans. Try your bank with your checking account as well. They can give you an idea of interest rate, and closing cost. Take notes and don’t be affraid to ask questions.