Tehama Country Real Estate

Tehama Country Real Estate – 3 Real Estate Spotlight By Alex Mason efore you go house hunting, it's a good idea to investigate your credit and make the necessary adjustments. Your credit score will determine your accessi- bility to lower interest rates and ultimate- ly how much you will shell out for a piece of property over the life of the loan. B The long-term financial plan is just as important as the short-term gain when acquiring the property. So get busy to find out what your credit score is and how you may improve your score to secure the best lending options. The Three Big Credit Reporting Agencies The three main credit reporting bureaus are Equifax, TransUnion and Experian. We are all their clients whether we like it or not, for better or for worse. The good news is that the big three cred- it bureaus will issue you one free credit report once a year. Simply put your request into writing and obtain your cred- it score from all three agencies. These are the same companies that your home loan lender will be contacting, so give yourself a head start to correct what you can. In general, the higher your credit score, the more attractive your loan options will be. Your good credit score translates into a lower interest rate, and in some cases, a lower down payment. If you find your credit score to be less that what you need to secure a top quality loan, it makes good sense to raise your credit score before you purchase the prop- erty. How To Raise Your Credit Score The credit score is a numbers game. Whenever you make on-time payments you are rewarded, and late payments get a credit score ding. The object of the cred- it game is to get more good points by overtaking the bad ones. One way to raise a credit score is to get a credit card, or a series of them, with low interest rates and start charging your pur- chases. However, self control is key to obtaining a rapid rise in your score. Only purchase items that you have the money to pay off on-time and buy just So, be honest when you sit down with your loan officer and provide him or her with everything they ask you for to get your funding in order ASAP. Alex Mason is a former real estate agent and mortgage broker living in Los Angeles. your monthly essentials on credit. After less than a year of smart credit planning, your score will have skyrocketed and you are on your way to a better mortgage loan. If you rack up debt by carrying a balance on your cards every month, it could end up hurting your credit score. Your local loan officer might have the names and contact information for liberal credit card lenders to get started improv- ing your credit score. However, be sure that when you sign-up with a card that the agency reports to Experian, Equifax and TransUnion or the entire credit charg- ing project is moot. Major department store cards are usual- ly qualified, but small store in-house cred- it may not help your situation. Some secured credit cards participate with reporting to the major bureaus and are an excellent choice to re-build your credit. You can never spend more that what you have deposited in their account, so there are no worries about getting into a choke hold of debt. Get Pre-Qualified Before House Hunting Time is money, and neither you nor your buyer's agent wants to waste time looking at properties that you cannot afford. Your loan officer will take away the house hunting woes by issuing you a pre- qualifying letter for lending. This docu- ment indicates the limit of your loan, the interest rate, and payment structure you may expect. Buying with confidence begins with understanding how much of a loan you qualify for and that there is a lender ready to back you. In addition, many real estate agents and brokers want to see the pre- qualifying letter to ensure that you are a serious buyer and that they may better understand how to serve your buying needs. The pre-qualifying letter is a win-win situation for your real estate agent, and most importantly, for the buyer to shop for a home with peace of mind that deal is going to go through. A Home edit or Bef T t o Kno our Cr YWha e Buying w A bout

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