Patrick Duffy's Real Estate Blog

6 Credit Score Myths You Need to Know Before Buying Real Estate

If you’re buying real estate, you might start worrying about your credit score.  Unfortunately, there are a lot of myths about that score, and many individuals actually end up making things worse by following them.

Read this list of common credit score myths and be in the know before talking to a lender:

1.  Close out your credit cards. This is a big no-no, especially when you want to buy real estate.  Closing out your older credit cards, especially, can actually make your credit score drop.

2.  Lower your credit limits. Lowering your credit limits can hurt your credit score.  Part of your credit score is based on how much credit you have available.

3.  Get good credit by paying all your cards in full. If you’re buying a home, part, if not most of the cost will be credited.  What lenders want to see is that you know how to handle credit, not that you don’t have any debt.  Instead, use 10% to 20% of your available credit and pay your bills on time.

4.  Comparison shopping for the best credit rates is a no-no. Not true.  However, if you’re comparison shopping, do so in a short period of time.  That way, all queries hit around the same time and get lumped into one “hard” inquiry.

5.  Checking your score can hurt you. You’re entitled to one free credit inquiry from each of the three top credit agencies per year.  Just make sure you’re the one who asks for your credit scores instead of having a friend at a financial institution do it for you.

6.  The more you make, the better your score. This is only true if you use the extra income to pay off your debts.  Making more money, by itself, will not increase your credit score.

Of course, you want to make sure you have the best credit score you can if you’re buying real estate.  However, before you listen to the hype and myths, make sure you know the facts!

If you’re looking for a new home, I can help.  Call me at 703-403-0536 or email me at patrick@usrlty.com for more information.

Links:

1.  Make your credit score drop

http://www.homebuyinginstitute.com/help/2009/05/why-did-my-credit-score-drop-off.html

2.  Comparison shopping

http://www.pricingcentral.com/finance/index.htm

3.  three top credit agencies

http://www.fdic.gov/CONSUMERS/CONSUMER/news/cnwin0203/three.html

Another Freedom Select Home SOLD

WOW!  This home has wonderful curb appeal as you can see.  Stepping inside this 3BR townhouse you are immediately greeted by the wonderful upgrades it received.  Hardwood floors throughout the main level and fresh paint with the trim to make it pop really make the main level a sight to behold.  A well appointed kitchen with stainless steel appliances and a ceramic tile backsplash is here for the new owner to whip up a quick mid week meal or host aThanksgiving feast!

The upper level features new carpet and updated bathrooms with ceramic tile and new fixtures.

This home, located in highly sought after Old Bridge Estates, was sold as part of our Freedom Select Homes Program.

The Freedom Select Homes Program (FSH) is offered exclusively by U.S. Realty Partners, Inc.  The goal of the FSH is to provide an affordable and safe atmosphere, coupled with a quality living environment. By turning once unoccuppied and often unfinancable homes into beatifully renovated homes, the program also seeks to strengthen the area’s housing market.

For more information on homes currently in the FSH inventory, please contact me at 703-403-0536 / patrick@usrlty.com.

Sold: August 5, 2009 for $173,200

Another Beautiful Renovation in Woodbridge, VA – JUST SOLD

This 3BR townhouse in Woodbridge became quite spectacular.  The video just doesn’t do it justice!  Beautiful hardwood floors throughout the main level and a kitchen that packs a ton of sizzle made this home very popular when it was listed.  Sold as part of our Freedom Select Homes Program, this home also features new: ceramic tile in all bathrooms, ceramic tile backsplash in the kitchen, cabinets, countertops, carpet, paint, fixtures, vanities, and so much more.

The Freedom Select Homes Program (FSH) is offered exclusively by U.S. Realty Partners, Inc.  The goal of the FSH is to provide an affordable and safe atmosphere, coupled with a quality living environment. By turning once unoccuppied and often unfinancable homes into beatifully renovated homes, the program also seeks to strengthen the area’s housing market.

For more information on homes currently in the FSH inventory, please contact me at 703-403-0536 / patrick@usrlty.com.

Sold: August 3, 2009 for $175,000