How to Buy a House if You Have a Bad Credit Score

Your credit score has a direct impact on your ability to get approved for a mortgage to buy a home. If you are a financial rockstar, then you should be able to get the financing needed to buy the right home for your family. But, what if you don’t have a good credit score?

With a little bit of work, you can repair your credit score and prepare to buy the perfect home to suit your family. Don’t give up on your dreams, because there are things that can be done so that you can get the financing that you need!

Why is Your Credit Score Low?

The first step is to identify why your credit score is low so that you know where to focus your attention. Take some time to improve your financial picture before filling out the home loan application, so that the financial institution will see that you are a safe risk for a loan.

There are a few things to look at to identify the problems with your credit score. Consider your payment history: have there been a few late payments? Stay consistent always to pay on time, to build the history that shows that you are reliable with your payments.

Another big factor is your debt ratio. If all of your credit cards are maxed, then it doesn’t look good for your credit score. Stay focused with your payments to quickly pay down the balances, which in turn will improve your debt-to-income ratio.

Check Your Credit Score for Accuracy

In some situations, there might be errors that are having a negative impact on your credit score. Check the major credit score reporting companies to see if any errors are present. If you see something that is off, contact the company to have the errors corrected.

When you look at your credit history, it might be tempting to close old accounts that aren’t in use. But, the length of these accounts can be beneficial to help your score. So, it is best to keep them open instead of shutting them down. You might even consider making a few transactions on the accounts occasionally to keep them active.

A Real Estate Agent Can Help

Are you ready to buy your dream home and you need to know how to prepare? Talk with an experienced Atlanta real estate agent for more information. At Duffy Realty of Atlanta, we can connect you with the financial professionals who will provide the advice and guidance needed to be ready to make the purchase. With a little bit of work, you can prepare your finances so that you can buy the home that your family deserves.

We invite you to contact us anytime, and we will gladly help with your real estate needs. Our team is always here to offer assistance and answer your questions, and we would love to help: (678) 318-1700

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