Repairing Bad Credit before Purchasing a Home

Are you looking to purchase real estate in Cleveland Ohio, but perhaps your credit isn’t where you’d like it to be?

Here are a few tips to help prepare you and possibly strengthen your credit before you go to purchase that home of your dreams:

  • You should always retain all bank statements and pay stubs
  • If you’re renting, make your rental payments with a check, consistently, and keep a copy of the cancelled checks
  • Put as many utilities in your name and, of course, make sure they are paid on time. On time is defined as a payment no more than 15 days past the due date
  • Use a credit card to make purchases normally made during the month such as the purchase of gas, food, haircuts, etc.
  • Try to reduce the number of inquiries made into your credit
  • Increase the credit limit on your credit cards without using the additional amount. The lower the balance to credit limit ratio is, can improve your credit score.
  • If possible, do not make any major purchases just prior to buying a home, this can negatively effect your debt ratio
  • If you are receiving a gift for down payment and associated costs of closing a loan for a home, make sure that gift comes from a blood relative’s account and make sure the money is placed in the borrowers account 60 prior to loan application.

If you are looking to purchase, NOW really is a good time to take the plunge! I hope these tips help!

Good luck with your real estate pursuits. If you need any assistance, please do not hesitate to contact me.