assets and credit

What preparations and planning are you doing to buy your first home during this market of low interest rates and low house inventory? Two of the main hurdles I commonly see preventing people to delay purchasing is CREDIT and ASSETS.

Credit scores can usually be improved with some simple tweaks. Paying every debt obligation on time is a key indicator regarding your ability to repay a mortgage loan. Paying on time will increase your score over time the longer an account is open. Credit utilization on revolving credit accounts for up to 30% of your credit score. If you have a credit card then it is key that you never carry a balance of over 30% of the credit limit. Over 30% can actually hurt your score. Ideally it would be best to keep any monthly balance to less than 10%.

Assets is having at least enough saved for a down payment and possible closing costs. And in some areas of the country being able to not have to rely on the seller to pay any of your closing costs can give you a better chance to have your offer accepted. It is important to communicate to your loan officer any and all bank accounts, cash at home, investment accounts such as a 401K or IRA, trust funds, or any other account that you can obtain money from if needed for the purchase of the home.

Please reach out to me to discuss your personal situation and let’s see how to put you in the best possible position to purchase a home.