When it come to purchasing real estate there are a wide range of buyer types. They range from those who have never purchased a home and are in the very beginning stages to those who are making an experience purchase. Inevitably, those who are making a purchase for the first time almost always ask the same question: What if the most important thing that I should know about buying a house? And, my answer is almost always the same: Probably the first and most important thing that you should be aware of is your credit history. Now don’t get me wrong, if you were to ask 10 people that question, you may get 10 answers that differ from mine but personally the reason that I say credit score is because unless you are a cash buyer if you have a credit score of 474 and everything else is flawless, your chances of getting a traditional loan are greatly reduced.
To the traditional lender, your credit score is one of the things used to establish your record of your past history when it comes to paying your creditors. And since your past history is one of the best indicators of your future behavior, they will probably feel that you are a better risk if your score is higher (everything else being equal) and give you a loan. Typically, the next question is how does one check their credit score. I recommend that a person check their score using a “soft hit” method as is will not lower your score. Sites like: CreditKarma.com, Sellorbuyhouses.com and AnnualCreditReport.com will allow you to check your score and dispute reports that are incorrect. Disputing incorrect items can raise one’s score often within 30-40 days of their removal. This can be very beneficial.
The majority of buyer’s next questions are almost always the same: I’ve already done all that (and a few have even paid to have it done for them) and it didn’t help. What can I do now? Believe it or not, there are other options. If you are comfortable with doing your own research, you can explore them yourself. Just using the internet and watching T.V. we can find all types of them. One of the most interesting options is to work with an investor. Investors have a lot more “tools” in their tool belt. They have options such as Lease/ Purchase etc. Make sure you get lots references from other buyers before making a final decision on the investor with whom you will do business. I can’t emphasize this enough.
Good luck in your quest to buy a home and keep in mind that what’s been written in this blog is not all inclusive, it’s just my opinion. But in my opinion, it’s a good place to start.
Happy House Hunting.