As you have heard over and over again it is a great time to buy a home. Interest rates are at historical lows and properties that were in a higher price range have now become more affordable. Although there is great opportunities for many renters to transition themselves into homeowners, many are not able to qualify for a loan due to poor credit. Here are a few tips that may help you on your path to home ownership*Make your payments on time
Past payment history often tells lenders if you can be extended credit and are responsible enough to pay them back. Most late payments 30 days or more can show up on your credit report. These late payments on your credit report can stay on your report for seven years.
*If you have missed payments get current and try your best to stay current
*If you have credit cards keep the balance low when there is a high debt ratio it affects your credit score.
* Never close unused credit cards, this can have a reverse effect and drop your credit score rather than raise it.* Re-establish challenged credit by opening up 1 or 2 new accounts and paying on each account responsibly.
*Avoid letting your accounts be turned over to a collection agency
*Try to avoid judgements being file against you,call the other party and try to reach an agreement on the amount your willing to pay to stop the judgement from being filed
* Frequent changes in residence and employment establish a pattern of instability. Find a residence and an employer and stay stable for at least 2 years. (some lenders require 3years )
* Work toward decreasing your debt one way to do this is to limit or cease impulse purchasing. If it is not a necessity it can wait.
Remember if you are a resident of Georgia you are entitled to 1 free credit report each year. The request can be done online, by phone, or mailed. So monitor your credit
Repairing your credit is a slow process but diligence, good decisions, and being responsible are afew key factors that will get you in a higher fico score bracket.
