Learning to Repair Credit before Purchasing a Home
Learning to Repair Credit before Purchasing a Home
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
AB Answers
Publish Article
0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Hello Guest
Login
Login via
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Finance > Real Estate > Learning to Repair Credit before Purchasing a Home
Learning to Repair Credit before Purchasing a Home
Edit Article |
Posted: Jul 31, 2009 |Comments: 0
|
Share
]]>
Ask a question
Ask our experts your Real Estate related questions here…200 Characters left
Related Questions
I am trying to clean up my credit report and raise my scores, but it seems the more I do to help my credit score the lower it goes. I’m trying to purchase a home and in desperate need of help!
Does tax credit apply to second homes ?
How is a home equity line of credit calculated ?
How long does the first time home buyer credit last ?
Syndicate this Article
Copy to clipboard
Learning to Repair Credit before Purchasing a Home
By: Katrina
About the Author
Great homes await you in Arizona. If you want to get your hands on them, visit these sites Country Shadows Gilbert AZ Real Estate,
Finley Farms Gilbert AZ Real Estate and Coronado Ranch Gilbert AZ Homes for Sale.
(ArticlesBase SC #1086073)
Article Source: http://www.articlesbase.com/ – Learning to Repair Credit before Purchasing a Home
Many people look forward into getting loans before buying a house. However, getting one is not as easy as picking a plan and paying for it on an installment basis. Lenders would have to evaluate everything about the borrower. However, the most important data that has the highest impact on loan application is credit.
So before you buy a house, a credit rmight need some fixing. If you asked why, read on and you will learn how credit can affect home buying and how it can be repaired.
But first things first, you have to understand what credit is.
Understanding Credit
Every person has a credit and most probably living on it. Anyone can get it every time an institution would grant money for borrowing. People use the borrowed money to buy things when they do not have available cash. However, this would have to be repaid and it usually comes with interest.
Paying back credit is easier when you keep it low and when you have a stable source of income. But when you don’t, you might end up with late payments or could possibly be in default. If this constantly happens, you would have a bad reputation to your lenders, tenants and other merchants. And if they are unhappy, this will reflect on your monthly credit report that will be submitted to the Credit Bureau.
Credit Reports Affect Home buying
Credit is your make or break in home buying. As mentioned above, any loan relies on it, especially mortgage.
Lenders take time to investigate a person’s credit history. They do this to determine if the person is worth granting the loan. It is also one of the basis in determining the interest rates. So how do they do this? They do it by calculating the credit rating or scores.
Most Credit bureaus use FICO scoring methods in obtaining a person’s credit ratings. There are several items to be considered, the following are:
History of payments made= 30% The remaining value of your existing debt = 30% Period of having a credit = 15% New credits obtained = 10% (can be highly affected by inquiries with your permission) The type of credits obtained= 10%
Fair Isaac Corporation has created a scoring system that is used by most lenders. This is how they determine if you are qualified for mortgage and whether you are getting cheaper interest rates or not.
This scoring can be affected by your history payments, outstanding debts, length of time you had a credit, establishment of new credits and type of credits you have. Each of these factors has their respective percentage. The higher score you get the better deals you get with loans.
Since mortgage is inevitable in home buying, a person needs to make sure his or her credit standing is in a good shape. Otherwise, mortgage approval will be decline. Or it can be approved with high interest rates.
Fixing the Credit
So before you buy a home, get cracking on fixing your credit (even if you are sure it is good). Here’s how you can do it.
Fix any erroneous data from your credit report. Keep old debts and make sure you repay them on time. If you have credit cards, lessen its outstanding balance. The smaller it is the better. Limit authorization of hard inquiries. Avoid getting new credits before getting a loan.
Do not wait for the last minute to fix your credit. If you plan to buy a house, start checking your reports and continue good practices in paying off existing loans. This way, you’ll be assured of good deals on mortgage.
Retrieved from “http://www.articlesbase.com/real-estate-articles/learning-to-repair-credit-before-purchasing-a-home-1086073.html”
(ArticlesBase SC #1086073)
Katrina –
About the Author:
Great homes await you in Arizona. If you want to get your hands on them, visit these sites Country Shadows Gilbert AZ Real Estate,
Finley Farms Gilbert AZ Real Estate and Coronado Ranch Gilbert AZ Homes for Sale.
]]>
Rate this Article
1
2
3
4
5
vote(s)
0 vote(s)
Feedback
RSS
Print
Email
Re-Publish
Source: http://www.articlesbase.com/real-estate-articles/learning-to-repair-credit-before-purchasing-a-home-1086073.html
Article Tags:
credit reports, real estate, purchasing a home, repair credit
Related Videos
Related Articles
Latest Real Estate Articles
More from Katrina
Introduction to Balance Sheets
Khan Academy Presents: Using a home purchase to illustrate assets, liabilities and owner’s equity. (09:53)
First-Time Homebuyer’s Credit
Thinking of buying a home in 2009? You could put as much as ,000 in your pocket. (01:00)
How to Raise Your Credit Score
In the so-called “new economy,” a good credit score is more important than ever. You won’t be able to get a mortgage loan and buy a home without one. In this video, the creator of the Home Buying Institute will teach you how to raise your credit score fast, by focusing on the three most important factors. (04:15)
Bad Credit Mortgages
Whether you’re buying a home, refinancing your current home or consolidating debt there is a mortgage loan for you regardless of your past credit history. Options are available for borrowers with credit scores as low as 350! (05:25)
Windows and Doors that Qualify for the Energy Efficiency Tax Credit
Home improvement expert Danny Lipford explains how to choose windows and doors that qualify for the federal energy efficiency tax credit. (02:04)
Common Mistakes to Avoid in Real Estate Purchase
In real estate purchase, mistakes cannot be avoided. However, if you exercise caution and practice carefuly analyzis before you buy, these mistakes can be avoided and you can get a maximum benefit from your investment.
By:
Sonial
Home Improvement>
Moving and Relocatingl
Oct 30, 2009
Real Estate Purchase 101: Improving Credit
If you have credited that’s a little on the low end, you might have started looking at bad credit home loans. While that’s certainly one way to go, it might not be your best option. If you can improve your credit before buying a home so that you can qualify for a better loan, you should definitely consider doing so.
By:
Kinan Beckl
Finance>
Real Estatel
Aug 18, 2007
Are Real Estate Bank Owned Homes a Dime a Dozen?
There are things that need to be considered in buying bank owned homes. Having a good credit score can give you better interest rates loans and mortgages.
By:
Dan Schuesslerl
Home Improvementl
Jun 02, 2009
Real Estate – First Time Home Buyers Before Grabbing Your ,000 Pot Of Gold
Wow! The stimulus package is sure stimulating. Home buyers are jumping out of the woodwork and on to the Internet!
Great days are coming!!! A new house, ,000, no more renting, no more apartment dwelling…the first time home buyers are all over this free money…who wouldn’t be? They should be!
Not being…
By:
Claude Crossl
Finance>
Real Estatel
Aug 25, 2009
Real Estate-First Time Home Buyers-Before Grabbing Your ,000 Pot of Gold
Home buyer’s tax incentive. Real estate and lender tips to help you get your 00 once you buy your house!
By:
Claude Crossl
Finance>
Real Estatel
Jul 23, 2009
Protect Yourself From Real Estate Fraud
Real estate fraud targeting home buyers has been increasing, but you can protect yourself by knowing your rights and opportunities. Read “The Home Buyer’s Bill of Rights,” presented as a public service by CasaNuevaGuide.com.
By:
Lisa Zapalacl
Finance>
Real Estatel
May 18, 2009
Make Yourself Attractive to Cinch the Loan You Need for Your Aventura Real Estate Home
Two out of five borrowers often don’t get approved for a mortgage; first, because of the stricter qualifications, and second, because there is simply less mortgage to go around. If you need the financing for your Aventura real estate purchase, you have to be willing to do everything you can to make your application and yourself attractive to lenders, before you find yourself on the grim end of the statistics.
By:
Mark Ferrerl
Finance>
Real Estatel
Dec 09, 2009
Texas Land For Sale What Is A Good Loan
The first step to buying that Texas Land for sale of course is to pick out the land that you are interested in. But unless you are very wealthy, you have to secure a loan to make your purchase. I have a few suggestions to help you get a better rates and long term loan packages.
By:
Chuck Mageel
Finance>
Real Estatel
Nov 17, 2010
Remodelling Tips for Your Home
The housing market still seems a little shaky; many people are making the decision to stay in their current homes instead of selling and buying a new one. This of course means that more and more people are deciding to remodel their homes to improve their current home’s livability.
By:
Bruce Swedall
Finance>
Real Estatel
Nov 17, 2010
Purchasing A Home – Researching The Best School Districts
When evaluating a potential neighborhood, it’s essential to consider the standards of the nearby school district, appreciation rate, pricing, demographics, amenities, local government services, shopping, entertainment, and other features.
By:
Jason Fadienl
Finance>
Real Estatel
Nov 17, 2010
Know The Future Of A Community You Want To Live In
It’s not uncommon for numerous real estate buyers to purchase their initial home in an upscale community, only to find out later the developer will most likely be building townhomes and smaller houses next to this community.
By:
Jason Fadienl
Finance>
Real Estatel
Nov 17, 2010
What To Know When Home Buying
To avoid having your hunt for a dream home turn into a nightmare, you are going to need to take a rational method to the procedure early in the game. Before you actually even visit homes listed on the for sale, there are issues you need to consider to guarantee that you get the perfect match and do not use up a lot of time and funds running down properties that could potentially lead to a financial meltdown.
By:
Stefan Hyrossl
Finance>
Real Estatel
Nov 17, 2010
Jump-Start Your Future with Deltona Bank Foreclosures
Deltona bank foreclosures can help you begin building your future with their affordability and potential for huge savings.
By:
Joseph B. Smithl
Finance>
Real Estatel
Nov 17, 2010
Foreclosure Hardship Letter for Bank Loss Mitigation
All lenders who are having problems regarding home foreclosure should submit this kind of letter to the Loss Mitigation Department of the bank or the lender.
By:
karenl
Finance>
Real Estatel
Nov 17, 2010
Buy Elizabeth Foreclosed Homes with Ease
It is highly possible to purchase Elizabeth foreclosed homes with ease if you possess the right set of information and if you are diligent enough to follow through.
By:
Joseph B. Smithl
Finance>
Real Estatel
Nov 17, 2010
Purchasing your First Home: Knowing the Perfect Time to Make the Purchase
If you are planning to buy your homes, it is very important that you know the perfect timing of making the purchase. If you want to know the perfect time for you to buy yours, here are some of the signs…
By:
Katrinal
Finance>
Real Estatel
Dec 17, 2009
How to Reduce Stress in Your New Home
Moving to a new home is a very stressful activity. Imagine, you have to pack your things, move them from one place to another and set them up to your new place. If you have much stuff, it will probably take days before you could fully set-up the house.
By:
Katrinal
Finance>
Real Estatel
Dec 15, 2009
Home Security: Your Practical Options
Home security is fairly one of the most important things to consider in home management. It is not a difficult goal. In fact, it is east to achieve and one does not need fancy security gadgets to make it achievable. Any homeowner has an option to make his or her own home a better place even without having to spend a lot for security.
By:
Katrinal
Finance>
Real Estatel
Dec 15, 2009
Things to Do in Order to Have A Great Relocation
Everybody wants to have a great relocation process. However, there is no guarantee of the perfect move. In reality, relocating has many challenges. It does not only cover problems related to packing, transfer and setting-up the new place. Problems involved in this situation encompasses more than the physical aspect. It involves mental and psychological issues. And if you are the reason for the whole family to relocate, you need to address these concerns. This is most especially true if you have
By:
Katrinal
Finance>
Real Estatel
Dec 15, 2009
Eco-Friendly Features: Things You Should be Seeking for
If you are currently shopping for homes, then you should include eco-friendly homes in your list. Eco-friendly properties have enormous benefits for you. That is why you should be seriously considering them as an option.
By:
Katrinal
Finance>
Real Estatel
Dec 04, 2009
Keeping Your Home Free of Toxic Mold
A house can be easily degraded with the presence of molds. If you look at them, they just seem to look like a cottony patch sticking on your wall: harmless and small. However, when left unattended, they could multiply easily. Hence, destroying the aesthetic value of your homes and weakening the structures. Prevention is always better than cure. Read this article to learn more about how to protect your homes from molds.
By:
Katrinal
Finance>
Real Estatel
Dec 04, 2009
The Use of Home Inspections in the Purchase Process
There are many homes in the market and all of them can be very pretty. Naturally, if the house is beautiful, you will be drawn to want to buy the property. If your mortgage and your funds could cover for the purchase cost, you will definitely jump into it. However, one thing you should know is that not all good homes are also of good quality. The beauty that you see may just be a front. That is why home inspection has become an integral part of home buying.
By:
Katrinal
Finance>
Real Estatel
Dec 04, 2009
Keeping Your Homes Safe
Certain things can be beyond your control. How other people behave is not something you can manipulate. So if you want to keep your homes safe against bad people, you have no choice but to protect your home against them.
By:
Katrinal
Finance>
Real Estatel
Dec 03, 2009
Add new Comment
Your Name: *
Your Email:
Comment Body: *
Verification code:*
* Required fields
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
Katrina has 194 articles online
Contact Author
Subscribe to RSS
Print article
Send to friend
Re-Publish article
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
Finance
Accounting
Banking
Credit
Currency Trading
Day Trading
Debt Consolidation
Insurance
Investing
Loans
Mortgage
Personal Finance
Real Estate
Taxes
Wealth Building
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2010 Free Articles by ArticlesBase.com, All rights reserved.
Fast Credit Repair
Related Repairing Credit Articles