Considering buying this spring, but concerned about your credit, here are Instant Credit Repair for 2023 Spring Home Buying. I represent Main Line buyers, and there are some easy ways to increase your borrowing power prior to applying for financing. A score in the mid-600s or higher is often considered a good credit score, however for home buying, according to Fannie Mae, the average home buyer score is around 750. To build your credit, consider how credit is calculated. Credit scores are calculated by computer algorithms called scoring models that analyze credit reports from Experian, TransUnion or Equifax. There are many scoring models that may use different factors, and weigh factors differently. They all share a number of similarities including being able to predict the likelihood that a borrower will be 90 days late on a bill in the next 24 months, this is why on time payments are so critical because a higher score indicates a person is less likely to fall behind on a bill, and vice versa. I always recommend being preapproved prior to starting your home search, and before taking the step towards preapproval, consider quick ways to improve your credit. If you have little credit history, apply for a credit card with a major credit bureau, or apply for another credit card. This is infrequently the case with my buyers, because of the median price points of Main Line PA real estate, but if you are seeing this video and are thinking of buying a home in the next years, you will want to start here. Consider cards with rewards programs or those with low interest that you are able to pay balances on promptly. This is the second key to improving credit, maintaining a low balance to debt ratio. It is integral to be on time in making payments on your cards to improve your credit score. Next, pay off past due accounts and pay down revolving accounts. There are a variety of financial tools to help accomplish this and the most important thing to remember here is that past due payments are to be avoided. Lastly, correct mistakes in your credit report. Credit reports provide information from past, existing, and delinquent accounts. If you have mistakes on your credit report, you will want ot rectify them, especially if you are applying for financing to purchase a home. Whether you are thinking of home buying in the next year or the next five, maintaining a healthy credit score and eye on your borrowing health is a good practice to have in place. If you are looking to buy on The Main Line sometime soon, please contact me.
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