|
How to Make Your Dream Home a Reality
Special to The Truth
Spring is peak home-buying
season, but for some, a low credit score may make it
difficult for their dream home to become a reality.
Nearly a third of
millennials (ages 18 to 34) hope to purchase a home within
the next year, but more than 40 percent may not have the
credit to do so, according to a survey from TransUnion, a
leading credit bureau.
In contrast, the survey
found older people’s intent to purchase a home better aligns
with their financial standing. For example, 17 percent of
those ages 35 to 54 said they plan to buy a home within the
next year -- the same percent that has a super prime credit
score -- an attractive trait for mortgage lenders.
As you start house hunting
this spring, what markets are heating up?
The Northeast is a hot
market, according to TransUnion findings, with 25 percent of
respondents indicating intent to purchase a home in the
region. The West was a close second, with 24 percent,
followed by the South with 21 percent and 15 percent of
people in the Midwest.
If you’re planning to
purchase a home this year, TransUnion offers several
important tips to consider to help make your dream home a
reality:
• Check your credit
report: Applying for a mortgage? Mortgage lenders will look
at your credit score and report when you apply for a
mortgage, so make sure your information is up to date. It’s
best to check your report three months before you start
looking at new homes to make sure your score is in a healthy
range.
• Start planning early:
Your credit score is built over a lifetime of spending. Keep
an eye on your score and track how your spending habits
affect it.
• Build credit: Consumers
with low or no credit should take steps to build a healthy
credit score. How? Paying bills on time, making sure you’re
keeping a low credit utilization ratio (the amount of credit
you’re using out of your available credit), and even asking
your landlord to report rent payments to a credit bureau
such as TransUnion are all ways you can build credit.
• Shop around: Research
mortgages and interest rates to receive a competitive offer.
Your credit score is of the utmost importance since lenders
will check your score and report to make sure you will be
able to responsible pay back the mortgage loan.
• Make a financial plan:
Putting down a larger down payment will lower your monthly
mortgage payment, but don’t put down more than you can
afford. Also keep in mind that you will need funds for
closing costs, including a home inspection, before you can
purchase your home.
• Keep an open mind: It
may take time to build credit and save enough money for a
down payment. Even if your finances aren’t in shape for a
home now, it doesn’t mean homeownership isn’t a realistic
possibility for the future.
More home-buying tips can
be found at www.transunion.com
Happy hunting!
Courtesy StatePoint |
