How to raise my credit score to buy a house?
How to raise my credit score to buy a house? Unless you can buy your home with cash, you will have to rely on your credit history to obtain a mortgage.
Credit history, through a point system, reflects how risky it is to lend money to a person. It starts at 300 points and reaches a maximum of 850. Lenders consider the score to be good between 670 and 739 points; very good, from 740 to 799 and excellent, from 800 points.
If your credit score is above 670 points, you can start dreaming about buying your home. But if it is lower, you should work to raise it, and here are some tips.
The first step is to request a report on the AnnualCreditReport.com website to see what the top three rating companies in the country think about your credit history: Experian, Equifax, and TransUnion. It’s the first thing lenders look at.
Obtaining this report will help you correct any errors that exist in it, such as, for example, if you appear with different addresses, something that affects credit. In addition, it will allow you to know your true score and thus work to improve it.
In this period of time in which you are building your credit to buy your home, you should avoid acquiring a car loan or making a large investment that requires the use of your credit. Also, avoid applying for or canceling credit cards and whenever possible, use your debit card.
Experts recommend not using your credit cards above 30%. On the other hand, it is essential to immediately eliminate all the debts accumulated on these cards.
One step in the right direction is paying your bills on time. The best way to do this is to activate automatic payment. Keep in mind that every time you are late on a payment your score is lowered. With these simple steps, you can increase your credit score and get ready to buy your home. How to raise my credit score to buy a house?
Very importantly, when you are prequalified for a mortgage, don’t forget to bring a Univista Insurance home insurance advisor into your group of consultants, who will inform you how the insurance of the property you wish to buy can affect the closing process. and on your future mortgage.