Be one step closer to your dream home!
Start by checking your credit score.
Since buying a home in Charlottesville VA is a huge investment, you have to make sure that you are financially prepared.
A credit score is a statistical number that shows a person’s creditworthiness. The credit score is used by lenders to evaluate the probability of a person repaying his or her debts. It is a three digit number ranging from 300 to 850, with 850 being the highest score that a borrower can get.
If you get a high credit score, it means you are a financially trustworthy person. On the other hand, a low credit score may hurt your chances for getting the financing.
To avoid problems, check your credit report from the three major credit reporting companies.
By law, you’re entitled to one free report each year. Since errors are common, it is a better to check your report first before your lender does. That way, if you find inaccuracies, you can have them corrected before they affect the mortgage lending process.
So how do you strengthen your credit score and be one step closer to owning your Charlottesville VA home?
One way is by paying down your balance. Thirty percent of your score is based on the amount you owe. However, you also have to consider your credit utilization. This refers to the ratio between how much you owe compared with how much credit you have. So if you have the means, drop your credit card balances.
If you are currently not in a position to pay down your credit card balances, you can still improve your credit utilization by asking for a credit limit increase.
For example, if you’ve maxed out your $2,000 card and get a limit increase to $4,000, you will instantly cut your credit utilization rate in half. Just remember that the goal is not to spend any of your new credit. Otherwise, you will be defeating the purpose of getting a limit increase.
Call me, Pam Dent, at (434) 960-0161. With my experience, I can help make your dream of owning a home in Charlottesville VA a reality.