Low credit scores holding you back from buying a home? Here’s what you can do.
SouthPoint Financial Services, Inc.
SouthPoint Financial Services, Inc.
Published on June 21, 2022

Low credit scores holding you back from buying a home? Here’s what you can do.

Are you struggling to buy a home because of your low credit score?

You’re not alone. Many people are in the same situation. The good news is that there are things you can do to improve your score and make it easier to buy a home.

In this blog post, we will discuss some of the best ways to improve your credit score and make it easier for you to buy the home of your dreams.

You can do this without the help of a credit repair company. Although if you do not have the time, patience, or tools to dig in and really understand how your credit report works and communicate with the 3 credit bureaus weekly, then it is best to work with a professional company like My Credit Guy

If you have a low credit score, the first thing you should do is check your credit report for any errors. You can get a free copy of your credit report from each of the three major credit reporting agencies once per year by going to www.annualcreditreport.com

If you find any incorrect information on your report, dispute it with the credit bureau. The credit report includes instructions on how to dispute the items.

Next, start building a good credit history by using a credit card and paying your bills on time. This will show creditors that you’re capable of managing your finances responsibly. Try to use only a small portion of your total credit limit so that you don’t get into debt trouble. We recommend 10-20% is a good balance/credit limit ratio. Pay the account off every 3-4 months for one month and then charge a tank of gas or two on it. Then make the payment on time every month. Use reminder apps or automated payment methods so that you insure the minimum payments are made each month.

In addition to building good credit, another way to make it easier to buy a home is to save up for a down payment.

Your down payment shows lenders that you’re serious about buying a home. It can help you get a lower interest rate on your mortgage. If you can’t afford a large down payment, there are government-backed loan programs that have lower interest rates and don’t require a high credit score.

Finally, work with a real estate agent and mortgage loan officer who can help you find the best home deals and loan that fits your budget. As your credit score improves and gets close to the range needed to get approved, a good agent will know how to negotiate with sellers and get you the best possible price. We work with several great real estate agents and would be happy to refer one to you.

We prefer to do that when you have your Pre-Approval Letter in hand.

If you follow these tips, you’ll be on your way to improving your credit score.

So what are you waiting for? Get started today.


Also read:

What’s in a Credit Score

What to do if your Credit Score is Wrong

5 Things about Credit Reports You Probably Didn’t Know


SouthPoint Financial Services, Inc.
SouthPoint Financial Services, Inc.
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(770) 205-6995