How To Build Your Credit If You Can't Get Pre-approved

How To Build Your Credit To Buy A Home If you dream of becoming a homeowner, one crucial step in the home buying process is to build your credit. Your credit score plays a vital role in determining whether you can secure a mortgage loan and at what interest rate. It reflects your financial responsibility and tells lenders how likely you are to make timely payments on your home loan. Here are some effective strategies to help you build your credit and achieve your dream of owning a home. 1. Get a Credit Card This one seems a little obvious, but one of the first steps to building your credit is to establish a credit history. A credit card can be a valuable tool in accomplishing this. Start by applying for a secured credit card, which requires a cash deposit that becomes your credit limit. By making small purchases and paying off your balance in full each month, you demonstrate responsible credit management. This helps build a positive credit history and boosts your credit score over time. BUT BEWARE: if you do not utilize this tool properly and with wisdom, is can have devestating consequences. Credit card debt is no joke and you should NEVER send more on the card than what you are willing to afford. And ALWAYS pay in-full, on-time, each month.  2. Ask Someone to Co-sign If you're struggling to get approved for a credit card or loan due to a thin credit file or low credit score, consider asking a trusted family member or friend with good credit to co-sign for you. This can provide the lender or credit card issuer with an additional layer of security, increasing your chances of being approved. However, remember that co-signers are equally responsible for repaying the debt, so only go this route if you are confident in your ability to make payments on time.  3. Be Cautious About Opening New Accounts While having a diverse mix of credit accounts can be beneficial, it's important to be cautious about opening too many new accounts within a short period. Each time you apply for credit, whether it's a credit card or a loan, a hard inquiry is recorded on your credit report. Too many hard inquiries can lower your credit score and signal to lenders that you may be financially stressed. Therefore, only open new credit accounts when necessary and ensure you can manage them responsibly.  Bonus tip: Once you do go under contract, please do not open any new lines of credit. Meaning don't buy a car, don't get a new credit card, don't finance furniture, none of it until you close on the home. Doing so messes up your debt to income ratio and can skew the lenders opinion of you're ability to pay the mortgage in a negative manner. Just buy the new car after closing day, thank me later! :) 4. Keep Accounts Open Your credit history is a significant factor in calculating your credit score. The length of your credit history accounts for about 15% of your FICO score, so it's essential to keep your accounts open, even if you no longer use them regularly. Closing accounts can shorten your credit history and potentially lower your credit score. It's advisable to use your oldest credit card occasionally to keep it active and maintain a longer credit history. Building your credit takes time, patience, and responsible financial habits. By following these strategies, you can improve your credit score and increase your chances of qualifying for a mortgage loan at a favorable interest rate. Remember, consistency is key – responsible credit management and timely payments are crucial for achieving your goal of homeownership. In addition to these steps, it's essential to monitor your credit regularly. Check your credit reports from all three major credit bureaus – Equifax, Experian, and TransUnion – for any errors or discrepancies. If you find any inaccuracies, dispute them promptly to ensure your credit report accurately reflects your financial standing. It's worth noting that building credit is just one aspect of preparing for homeownership. Saving for a down payment, managing your debt-to-income ratio, and maintaining a stable income are equally critical factors in the home buying process. Consulting with a trusted mortgage professional can provide valuable guidance and help you navigate the complexities of buying a home. If you need help or have any questions on how you can STILL buy a home with NO credit, reach out to me through the chat box on my website or send me a text directly to 704.674.5629 with the word 'CREDIT' to talk more about that opportunity. 

The Coming (Continued) 2024 Housing Crisis

In recent years, the real estate market has experienced its fair share of ups and downs. From the housing bubble burst of 2008 to the rapid increase in prices in 2021, the market has always managed to keep us on our toes. As we look ahead to the future, it appears that another challenge is on the horizon: the coming (continued) 2024 housing crisis. One of the main factors contributing to this crisis is the pent-up buyer demand coupled with low supply. Over the past few years, many potential homebuyers have been patiently waiting on the sidelines, hesitant to enter the market due to the uncertainty brought on by the pandemic. However, as the world slowly recovers and people regain their confidence, this pent-up demand is expected to explode. As more and more buyers enter the market, the already existing issue of low housing supply will be exacerbated. This low supply is a result of various factors such as construction delays, labor shortages, and increased construction costs. With fewer houses available to meet the rising demand, prices will be driven up, making it increasingly difficult for potential buyers to find affordable options. Another factor that will contribute to the housing crisis is the drop in interest rates. As interest rates decrease, borrowing becomes more affordable, enticing more buyers to jump into the market. This increase in demand, paired with the already limited supply, will create a highly competitive environment where bidding wars and soaring prices will become the norm. Real estate news outlets have been buzzing with reports of the impending crisis. Experts and analysts are closely monitoring the market, advising both buyers and sellers to be prepared for the challenges that lie ahead. For buyers, it means being ready to act quickly, as homes will be snatched up within days of listing. It also means understanding that compromises may need to be made, as finding the perfect home at an affordable price will be increasingly difficult. On the other hand, sellers have a golden opportunity on their hands. With demand outweighing supply, sellers can expect multiple offers and potentially even bidding wars, allowing them to maximize their profits. However, it's crucial for sellers to remain realistic and not get carried away with inflated prices. It's essential to work closely with real estate agents to set a fair price that reflects the current market conditions. In conclusion, the coming (continued) 2024 housing crisis is a real concern that both buyers and sellers need to be aware of. The combination of pent-up buyer demand and low supply will undoubtedly increase prices, creating a challenging environment for those looking to buy their dream home. With interest rates dropping, more buyers will enter the market, intensifying the competition even further. It's essential for all parties involved to be prepared, stay informed, and work closely with experienced professionals to navigate through these turbulent times.

Why 2024 Could Be Explosive For Real Estate

As we enter into the year 2024, the real estate market is showing signs of explosive growth. With interest rates below 6%, the eligible buyer pool increasing, and inventory finally starting to rise, this combination of factors sets the stage for a potential boom in the real estate market in the coming year. One of the key factors contributing to this potential explosion in the real estate market is the current interest rates. With rates below 6%, more buyers are able to enter the market and afford their dream homes. This increase in the eligible buyer pool creates a surge in demand for properties, driving up prices and making it a seller's market. For sellers, this is great news as they can expect to receive multiple offers and potentially sell their homes at a higher price. With more buyers vying for limited inventory, sellers have more negotiating power and can choose the best offer that suits their needs. This competitive environment in the market benefits sellers and encourages them to list their properties, adding to the inventory and further fueling the market's growth. Speaking of inventory, after years of tight supply, the real estate market is finally experiencing an increase in inventory. This is a welcome change after a prolonged period of low housing supply, which has driven up prices and made it difficult for buyers to find suitable homes. With more properties available, buyers have more options to choose from, leading to a healthier and more balanced real estate market. The rise in inventory is not only beneficial for buyers, but it also helps to alleviate some of the affordability concerns that have plagued the market in recent years. As more homes become available, the pressure on prices is reduced, allowing buyers to find more reasonably priced properties. This increased affordability, coupled with the low-interest rates, further expands the eligible buyer pool and sets the stage for the explosive growth we anticipate in the real estate market. With all these factors coming together, the real estate market in 2024 is shaping up to be one of the most dynamic and exciting periods in recent memory. Buyers have the opportunity to take advantage of low-interest rates and a larger inventory, while sellers can expect multiple offers and potentially sell at higher prices. It's a win-win situation for both parties involved in the real estate transaction. Of course, it's important to note that real estate markets can be unpredictable, and there are always factors that could impact the trajectory of the market. Economic conditions, government policies, and global events can all influence the real estate market in unexpected ways. However, based on the current trends and indicators, the outlook for 2024 looks incredibly promising.  If you have any questions about what this real estate market in 2024 might look like for your specific situation, shoot me a text to my personal phone704.674.5629. I promise it's actually me and not some robot or an AI chat bot! Let's put together your real estate blueprint and get you the home of your dreams!