If you’re like most people, your credit could use a little “brushing up” before you apply for a loan.
That’s perfectly normal, and you’re thinking along the right lines: the better your credit score, the easier it will be to get a good interest rate and more favorable terms from your lender. While this isn’t financial advice (you should talk to a financial adviser for that), it can give you hope when you’re working toward buying your own piece of the American Dream.
Bad Credit and Applying for a Loan
Having bad credit doesn’t disqualify you from getting a loan, but it can hurt your chances. It can also make it harder to get agreeable terms on a loan.
So what should you do?
Talk to a broker who focuses on helping people in situations similar to yours. There are a number of mortgage brokers who specialize in working with people who have bad credit, and your Port Aransas Realtor® may even be able to refer you to a local expert.
What Your Broker May Advise
Your mortgage broker may advise you to take a few steps to improve your credit, including:
- Opening a line of credit with a major credit card company. While you don’t need to start with a high limit, the key is getting a card and making timely payments on your account. This shows lenders that you’re responsible with your debt and that you’re “good for it.”
- Showing steady employment. When you’ve worked in the same place for a year or more, you’re showing lenders that you’re responsible, too.
- Save up at least 10 percent toward a down payment. If you’re willing to contribute to a home you want to buy, lenders can see that you’re committed and may be more likely to want to work with you.
Are You Buying a Home in Port Aransas?
If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
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