Purchasing a home for the first time can be both daunting and invigorating. Today I have mentor Gail Hillman here to give advice to first-time homebuyers about how to position themselves for a successful purchase.
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Buying your very first home is an important event. Gail Hillman, an incredible mentor and even better human being, is with me today to help give advice to Sarah, a client of mine who was looking to buy a home for the first time.
Sarah’s first question was about credit. The myth that you need a credit score higher than 700 still persists to this day, so I’ve asked Gail to help clear that up for us.
According to Gail, lenders can actually take a credit score as low as 585, which is a far cry from the higher score many people believe is necessary. Now, it is better to have a higher score; it will be easier to get a loan in general, but it will also afford you access to different types of loans.
If your credit score is low, that’s not a permanent situation. If you’ve been late a few months here and there or are suffering from the consequences of past bad decisions, there are several options available to get your affairs in order.
Sometimes it’s a matter of having a high balance on a credit card, which can ruin your credit. It could also be a matter of needing more credit. Other times, credit issues can stem from medical charges and other things. Regarding any of these issues, we can put you in contact with someone who works in credit repair; it might take three to six months to fix, but it is possible, and I highly recommend it. That said, be sure to get a referral for a credit repair worker, since they’re not licensed and could be inexperienced.
Beyond improving your credit, Gail’s advice for first-time homebuyers is to contact a lender before shopping for homes. Let your lender know where you’re at in the process; the last thing you want to do is look at a home, only to find out you can’t afford it.
If you need help beginning the home buying process for the first time, please reach out me at Ebby Halliday Realtors. We can advise you and give you a ballpark idea of what you’ll need to do in order to get in the best position to buy a home.
Sarah’s first question was about credit. The myth that you need a credit score higher than 700 still persists to this day, so I’ve asked Gail to help clear that up for us.
According to Gail, lenders can actually take a credit score as low as 585, which is a far cry from the higher score many people believe is necessary. Now, it is better to have a higher score; it will be easier to get a loan in general, but it will also afford you access to different types of loans.
If your credit score is low, that’s not a permanent situation. If you’ve been late a few months here and there or are suffering from the consequences of past bad decisions, there are several options available to get your affairs in order.
Sometimes it’s a matter of having a high balance on a credit card, which can ruin your credit. It could also be a matter of needing more credit. Other times, credit issues can stem from medical charges and other things. Regarding any of these issues, we can put you in contact with someone who works in credit repair; it might take three to six months to fix, but it is possible, and I highly recommend it. That said, be sure to get a referral for a credit repair worker, since they’re not licensed and could be inexperienced.
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I make it a point to tell all my first-time homebuyers that even if you’re not going to buy for another six months, it’s a good idea to start the home buying process early. It will give you some time to cushion yourself and repair your credit. Remember, the higher your credit score, the better the rates that you’ll get on any loan you’re approved for.
If your credit score is low, that’s not a permanent situation.
”
Beyond improving your credit, Gail’s advice for first-time homebuyers is to contact a lender before shopping for homes. Let your lender know where you’re at in the process; the last thing you want to do is look at a home, only to find out you can’t afford it.
If you need help beginning the home buying process for the first time, please reach out me at Ebby Halliday Realtors. We can advise you and give you a ballpark idea of what you’ll need to do in order to get in the best position to buy a home.
