North Texas Real Estate Blog

Some of us in our naiveté may think that we can just call up a lender and sign on for that gorgeous home we just saw around Southlake real estate, Colleyville real estate, or Grapevine real estate. Unless we understand that buying North Texas real estate is a bit more complex than buying a car, we may be suddenly brought back to earth by the response to our pre-qualifying query-unless, of course, our incomes and credit scores pass muster.

When we are serious about winning the key to Tarrant County real estate and Denton County real estate, here are some steps to take to avoid surprises.

1. Regularly check the three major credit reports each year.
2. Take the challenge of raising the credit scores we already have.
3. Look for daily ways to save money.

Credit Reports

In this day and age, it is imperative to monitor your credit reports. The first reason is that through human error, the report may be incorrect; another reason is because of the increasing prevalence of identity theft. If you ask, the website www.annualcreditreport.com will annually provide you with one free report from each of the three major credit-reporting agencies.

The credit reports will list your payment histories, loan balances, and other financial notes and can be accessed with your permission by not only lenders but landlords, employers, and insurers who need to know your financial habits. It is important that you correct any misinformation on your reports and explain any lapses. There are instructions on the agency websites for Equifax, Experian, and TransUnion to assist you in correcting information. Another way to enter a correction is to send a letter in the mail to the reporting agency. Corrections take from 30 to 180 days to be verified by the reporting agency.

Raising Credit Scores

Besides keeping your identity intact, addressing discrepancies is step number one to raising your credit scores.

Reporting agencies and lenders also look at your behaviors. If you know what they are looking for, you will not unwittingly work against yourself. One thing to be aware of is that each time you apply for a credit card, it shows up on your credit report and lenders could assume that you do not have enough cash on hand if you are living off a deck of credit cards. Only open credit cards when you absolutely need them.

Late payments will severely affect your credit score. Pay all of your bills on time or ahead of time.

Make a game of paying extra on your credit card bills and paying them down as fast as possible, keeping your balances low in relation to your available credit. You are scored on how well you do this! In fact, if you are planning to take out a loan soon, do not close unused credit cards right now as the total ratio of available credit to balances is accessed for a mortgage.

Scrutinize Expenditures

Use the specific goals of paying down debt to re-create your spending habits. Cook from scratch instead of using processed or precooked items. Eat out-at home! No expensive TVs or computers or cars right now. Be lean and mean and live within your means.