Which is harder to accomplish? Scaling Half Dome or improving your credit score?
Sounds like an easy question but credit is always one of the biggest challenges you face when you decide to become Palm Springs home buyer. There are many pitfalls that can sink your chances of obtaining a mortgage so please read this guide before you begin your home search to find the perfect Palm Springs dream home.
We will include a few links at the bottom on this post to a few other good articles about credit and mortgages.
Pay your bills on time
What a no brainer! If you can’t pay your bills on time, then maybe it’s not the right time for you be buying a home. Your life must in order both financially and personally before you take on the responsibility of a new home.
Don’t open new credit accounts and don’t close any either!
Work on paying some of your balances down to improve your debt ratio and raise your credit score and do not make any major purchases before you plan on taking on a mortgage. And closing accounts can actually hurt your FICO score because it will raise your debt ratio. If you feel tempted, pay off cards and bury them deep so you can’t use them easily.
Spread your credit evenly over your existing accounts
If you have two accounts each with credit limits of $5,000 apiece, it’s better to carry $2,500 on each than $5,000 on one. Maxed out accounts will harm your overall credit score.
Fix all significant errors
Your credit report is available for free at FreeCreditReport.com may include misinformation about late payments, charge-offs, and credit limits lower than they are. Write to the reporting agency and correct the record. Negative items more than seven years old should automatically fall off your report.
Marry a millionaire…..
Nobody said this would be easy but wouldn’t this option be a dream?
Get professional help
There are many free resources for consumer credit counseling and you can find an agency through the National Foundation for Credit Counseling. Search on-line for help but be sure to go with someone you trust and who can offer great references.
Call your creditors
If you’re having a tough time with your payments or if your interest rates are high, call your creditors. Tell them your situation. Many of them have temporary hardship programs that will cut your payments until you can get back on your feet. Also possible (and I have done this myself), negotiate a lower rate of interest. You’d be surprised how many banks will listen to your story and agree to a lower rate of interest.
If you have two accounts each with credit limits of $5,000 apiece, it’s better to carry $2,500 on each than $5,000 on one. Write to the reporting agency and correct the record. Negative items more than seven years old should automatically fall off your report.
And the number 1 tip for improving your credit and your life in general
Is there a way to grow your income? No? How about shrinking your budget? There are so many ways to increase your income and asset base through some targeted training and creative thinking. As far as budget, when is the last time you made a list of all the things in your budget that were truly discretionary? It may surprise you to see how much you could pare down and then apply that money to your outstanding balances.
Real estate investing, for one, has created more millionaires than any other single path to wealth. We live in a land of opportunity. You can’t scrimp and save your way to affluence. Get out there and get educated to get rich.
Want more information about the Desert Cities ?
Buying or Selling Palm Springs Real Estate?
Buying or Selling in today’s real estate market is a challenge and a process that is easily accomplished with the help of a Palm Springs real estate agent focusing on the neighboring desert cities. You will need an expert who has lived in the area, knows the lifestyle and the unique housing market.
The market for Palm Springs real estate is alive and the values are exceptional especially for those who are looking for an ideal investment or a vacation/retirement property. We have many Palm Springs real estate properties available for every need, budget and amenity list.
Are you searching for your primary residence? We have a variety of Palm Springs homes for sale and have what it takes to get you settled in the neighborhood of your choice.
Selling your home in Palm Springs? Your home buying or selling experience will be one that is easy, friendly and professional. Our mission is to offer outstanding service while utilizing the best practices and Internet technology available.
If you are planning to buy Palm Springs investment property, or property in the surrounding area, we have the staff partners who will help with any project or property management tasks while you are away.
For more information on how we can best serve your Palm Springs Real Estate and surrounding area needs, please fill out the online contact form or give us a call at 760-413-2871.
We won’t just sell you a house but We WILL help you find the home you will LOVE!
Ron is a Palm Springs Realtor® who specializes in the surrounding desert cities, including Palm Springs vacation homes, investment properties in Palm Springs and primary single-family Homes for Sale in Palm Springs.
He has the long-term knowledge necessary to make buying and selling Palm Springs real estate a smooth and enjoyable process. Ron has extensive experience in Coachella Valley real estate, having lived and worked in the desert area since 1998.