In the market for a new home in 2021? With the new year here, it's time to get your finances in order.
Let's explore a few tips that will help you get a jump on improving your credit score before the end of the year.
The first step is to order a fresh copy of your credit report from one of the major agencies. The Fair Credit Reporting Act allows you to access a free copy of your credit report once every 12 months. So, if you have not ordered a copy recently, it is time to do so. You can access this free service through AnnualCreditReport.com, which is a website recommended by the Federal Trade Commission.
Now that you have a copy of your credit report, it's time to go through it, line-by-line. You should recognize every current and outstanding account in the report. Any balances should be in order and reflect how much you owe. It's critical that you flag any mistakes or old debts that you have already paid in full. If you come across anything that shouldn't be on your credit report, call the reporting agency to let them know. If necessary hire a credit repair specialist to help you fix errors lenders don't like to see disputes on credit reports.
The final tip is to prioritize your outstanding debts so that you can pay them off more efficiently. Try to pay off your debts with the highest interest rates first. Getting these paid off faster means that over time, you're spending less on interest payments. Moreover, you can use that extra cash to pay your debts down further. Always monitor your credit report. Keep your balances low on your accounts so that you credit usage and debt to income ratios are low. The numbers you need to know are you FICO Score. DTI - Debt to income ratio and credit usage.
The above are just a few of the action steps that you can take today to start improving your credit score. When you're ready to start the process of buying a home. Call me and let's discuss your options and I'll be happy to provide you with a list of local mortgage officers.
Iris LaBouchardiere REALTOR®
ABR, CNE, SRS, NHC, ASP • LICENSE #0616260
Walzel Properties, LLC
15420 Ridge Park Dr, Houston, TX 77095
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