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Sage Realty Discusses How Credit Scores Work for Buyers Seeking Main Line Homes for Sale

How Credit Scores Work for Buyers When you are ready to look at Main Line homes for sale, your credit score is a factor in the type of mortgage you can acquire. What factors influence your credit score and how can you make sure yours is healthy? Sage’s Main Line Realtors® offer some tips on how credit scores work.

If you are unaware of your credit score, when you start thinking about buying a new home one of the first things you should do is review your credit report. It is best if you have identified a lender at this point who can pull the report and talk you through the jargon. Look the report over and make sure that all of the information is accurate. If you see inaccuracies or discrepancies, contact the credit reporting company to start the process of corrections. You can also begin working to improve any trouble areas.

General Tips for Improving Your Credit Score

Pay Your Bills on Time

Whether you have medical bills, credit accounts or car loans, pay them on time. Paying late once can likely be explained pretty easily without too much damage to your credit. However, habitual late payments, even only a day late, can have a major impact on your credit score.

Limit Credit Card Spending

Keep your credit card spending to around or below 30% of the maximum and pay them off in full each month if possible. If you have high balance cards showing up on your report, try to pay the balances down.

Minimize New Credit Accounts in the Year Leading Up to Searching for Main Line Homes for Sale

Too many “hard” credit inquiries can hurt your credit score. A hard inquiry, which occurs when you apply for a new credit card, stays on a credit report for two years. However, these types of inquiries typically only impact your score for one year.

A soft credit check, which occurs when a consumer checks his/her own credit score, has no negative impact on credit score. In fact this type is recommended with today’s growing concern of identity theft. When you do begin to look at mortgages, try to keep the inquiries within a window of 30 days or less to minimize impact on your score.  The reason for this window recommendation is that FICO ignores inquiries made within the 30 days of your mortgage loan, so if you apply for a loan within that window, your score will be unaffected.

Work on Fixing Negative Issues or Inaccuracies

You may find that your credit report contains errors. Those can be fixed but could take some time. Contact the creditors directly, and they can send letters to the credit reporting agency or make corrections. For legitimate negative issues, try to work out a solution with the creditor. If you are unable to make progress, you may want to contact a credit counselor for issues that have major impacts on your score.

The good news is that you may qualify for a good mortgage rate with a lower credit score than you think. Many people think you have to have a perfect credit score to buy a home. Though you will get a better interest rate for a higher score, you could qualify for an FHA loan with a credit score of 580 or higher. According to the Lenders Network, 680-739 is the typical range for homebuyers, but some factors, like a high down payment, could help mitigate the need for a higher score.

Call Sage When Looking for Main Line Homes for Sale

Sage Realty offers knowledge and experience to our clients, making the buying process much less complicated to maneuver. When you are ready to look for Main Line homes for sale, call Sage to learn about available homes and to ask questions about how to qualify. Contact us today for a consultation!

 

Featured Testimonial

I moved to PA from Washington State and learned that realty is local. There were things that I thought I knew about buying a house previously but boy was I wrong. Linda was very patient with me but also did not hold back when she saw potential problems, and always made sure I had all the information I needed before making a decision and didn’t belittle concerns to just get a sale. Above all else, and this was the most important thing to me, Linda has a high ethical standard, is very transparent in her approach and is someone I trusted making one of the biggest decisions of my life. – A. Lindsay (Courtesy of Google)

 

Hear From Our Clients

  • "We were so pleased that a co-worker recommended someone in the area that she trusted. Boy, did we strike gold on all counts. You are amazing!"
  • "Instead of trying to take advantage of conflicts of interest, she puts the client's interests first."
  • "Linda is a hardworking, proactive and knowledgeable realtor. Throughout the process of finding and buying our new home, she was always responsive and kept us up to date on every detail."
  • "Linda and the group at Sage are the right fit. You won’t find more knowledgeable, prepared and professional agents."
  • "Linda and Tracey really know the Main Line area."
  • "Throughout the entire process we never doubted that she always had our best interests in mind. We wouldn’t consider anyone else when buying a home on the Main Line."
  • "From start to finish, Linda brought to bear a most helpful combination of experience, knowledge, attention and integrity on a somewhat complicated transaction. There was never any doubt that she represented our interests."
  • "Her knowledge of the area helped us quickly narrow our search and ultimately scored us an amazing home in an incredible neighborhood."
  • "It is hard to trust when you are not sure of the rules of the game. Working with Linda made us feel like we were family. Linda took her time to relay and explain everything in detail."
  • "Linda’s honesty and real estate savviness made for a wonderful home buying experience!"

Read more about what our clients have to say

Hear from our Clients

  • "We were so pleased that a co-worker recommended someone in the area that she trusted. Boy, did we strike gold on all counts. You are amazing!"
  • "Instead of trying to take advantage of conflicts of interest, she puts the client's interests first."
  • "Linda is a hardworking, proactive and knowledgeable realtor. Throughout the process of finding and buying our new home, she was always responsive and kept us up to date on every detail."
  • "Linda and the group at Sage are the right fit. You won’t find more knowledgeable, prepared and professional agents."
  • "Linda and Tracey really know the Main Line area."
  • "Throughout the entire process we never doubted that she always had our best interests in mind. We wouldn’t consider anyone else when buying a home on the Main Line."
  • "From start to finish, Linda brought to bear a most helpful combination of experience, knowledge, attention and integrity on a somewhat complicated transaction. There was never any doubt that she represented our interests."
  • "Her knowledge of the area helped us quickly narrow our search and ultimately scored us an amazing home in an incredible neighborhood."
  • "It is hard to trust when you are not sure of the rules of the game. Working with Linda made us feel like we were family. Linda took her time to relay and explain everything in detail."
  • "Linda’s honesty and real estate savviness made for a wonderful home buying experience!"

Read more about what our clients have to say

Sage Buyer Tips

Use Sage Buyer Tips to research the Main Line and stay up to date on real estate news. This online destination is chock full of resources for buyers and sellers: you can see our Main Line communities or explore Sage favorite places. Browse properties here and search other Main Line real estate. With Sage’s advice and experience, first-time buyers and those looking to upgrade can find homes best suited to their needs.