Credit Tips When Buying a Home in the Southern Ocean County Real Estate Market
Southern Ocean County Real Estate
The real estate market in Southern Ocean County has been active and there are some outstanding opportunities for buying a home. With a stronger market comes more competition and one of the best ways to distinguish your offer in comparison to the competition is having a strong financing position. This will often involve having a pre-approval letter, which is different from a pre-qualification letter. When applying for a pre-qualification or pre-approval letter one of the first metrics a lender will use is your credit score. There are some great credit tips when buying a home in the Southern Ocean County real estate market that can go a long way to improving your interest rate and your ability to purchase a home
Credit Tips When Buying a Home in the Southern Ocean County Real Estate Market
- Do Stay Current On Existing Accounts— One 30-day notice can cost you.
- Do Continue To Use Your Credit As Normal—Changing your pattern will raise a red flag and lower your credit score.
- Do Call Your Mortgage Professional before making any address or credit changes.
- Don’t Apply For New Credit—Every time you have your credit pulled by a potential creditor or lender, you can lose points from your credit score. This includes co-signing for a loan.
- Don’t Close Credit Card Accounts—If you close a credit card account, it may appear that your debt ratio has gone up. Closing a card will affect other factors in the score, including credit history.
- Don’t Max Out Credit Cards—Try to keep your balances 30% below their limit during the loan process. If you pay down balances, do it across the board on all your cards.
- Don’t Pay Off Collections Or ‘Charge-Offs’—If you want to pay off old accounts, do it through escrow. Request a ‘letter of deletion’ from the creditor.
- Don’t Consolidate Your Debt—When you consolidate all of your debt onto one or two credit cards, it will appear that you are ‘maxed out’ on that card and you will be penalized.
Buying a Home in the Southern Ocean County Real Estate Market
There are many factors that go in to the determination of one’s qualification. Lenders will look at payment histories, income, and current debt in addition to the credit score and other specific criteria. The best advice we can offer is to follow the above tips and consult multiple lenders to seek their advice and guidance. Above all else, when making an offer on a home in the Southern Ocean County real estate market, it is important to be realistic in your budget and only buy a home you can comfortably afford. We can assist you in this process by providing advice on ownership costs and available inventory in conjunction with your lenders suggestions for budget. For more information about these credit tips when buying a home in the Southern Ocean County real estate market, please do not hesitate to contact us.
Ocean Sales Team
Farrah Pileggi Sales Agent: 201-952-4131
Kim Pileggi Transaction Processor | Nathan Colmer Marketing Agent
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