Ways to Improve Your Credit Score Before Purchasing a Home

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Are you looking for ways to improve your credit score before purchasing a home?

Source:al.com

“Only two things can bring up a bad score – time and good credit behavior,” says Realtor Tim Swearengin with Keller Williams Realty. “Directly improving credit scores is dependent upon identifying what negative items are on the credit report and addressing them individually.”

As a Realtor, Valerie Miles with Keller Williams Realty says she sits down with buyers to discuss the process from beginning to end. “Part of the process is to introduce them to a reputable mortgage broker,” she says.

“Unless someone is paying cash for a property, the first step is to get pre-approved for the loan. Knowing what you are qualified for, and having the pre-approval in hand before you begin, gives the buyer confidence as they begin looking for their home,” Miles says. “It takes away any unknown and it certainly makes them a stronger buyer.”

Supreme Lending Area Manager Shannon Fortner says the biggest misconception people have is that negative credit comes from not paying bills on time or letting your car be repossessed. “Don’t get me wrong, those certainly have a huge impact but one thing people do not think about most of the time is that utilization of credit has a large impact on your credit score as well.”
“For example if you have a credit card and the limit is $2,000 and your balance is $1,900 – the closer you are to your max limit the more your score can negatively be impacted because you are utilizing your max potential of credit. The recommendation will always be to try and keep your balance below 50 percent of your limit,” says Fortner.

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