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Advice for a future homeowner?

I am a recent college graduate and I have been paying off my student loan debts. I'm not really sure what my credit is but I want to know if anyone has any tips or advice that might be good to know now rather than learning the hard way later. I know its a really vague question but I want to be proactive in learning about what i need to make sure that I can buy a house when the time comes by SDesho_241_817 from Ontario, California. Jul 31st 2012 Reply


Mortgage Rate PA (MortgageRatePA.com)
#28 ranked lender in Pennsylvania - 6 contributions

Besides student loans what else do you have on your credit? Check out your credit report go to annualcreditreport.com.(IT IS FREE only order one of the 3 and in December order another from one of the other major credit companies. Make sure there is nothing showing up that is not yours. Don't worry about your score or about buying any extra add-ons. Just look at your trade-lines (Items reporting to your credit report.)To build your credit apply for a few cards. A good place to review credit card offers is bankrate.com. DO NOT get over extended take out a few cards and rotate them monthly making sure you're able to payoff the balance by months end. Building a great credit history is real easy. Just pay off or down your balances and pay them when they're due. If you do that you'll be GREAT! If something negative happens in your life like loss of income, sickness anything that may make you miss a payment be proactive and communicate it with your credit company. They'll work with you if you are honest and upfront and willing to work with them. Also always document who,what & when, when you do talk to your credit companies remember they are human as well...GOOD LUCK!MortgageRatePA.com

Jul 31st 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

To put yourself in a position to get a mortgage you need the following.. Credit score needs to be 640 or above.. Credit card balances no more than 30%, 3.5% down payment (can be gifted), stable income with a 2 year track record. Debt to income ratio 45% or lower. satisfactory credit with at least 3 open active accounts...I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jul 31st 2012
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Advice would be to ask your local credit union for a secured installment loan and your local bank for a secured credit card. Each for about $300.00. These two will not only provide you with your current credit rating but also start building your credit as you will need history on a couple trade lines in order to buy a home. The process for the two lines is very simple so please get on it right away and start building that credit. Make sure you follow the rules and procedures for each and watch your score grow month to month.

Jul 31st 2012
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

Email me and I will send you a package my partner and I came up with of important info and guidelines you need to know. It will go over everything to prepare you to get a mortgage on a home. Team@BestMortgageOption.com Michelle

Jul 31st 2012
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Bill Dunger (billdunger)
#19 ranked lender in Washington - 35 contributions

Goof for you....being proactive. Credit scoring has become an art it seems lately. So much info., yet not enough time to go through it all. I would suggest reading through this website. http://www.tfc2009.info/ they have plenty of information for you to go over.good luck

Jul 31st 2012
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

As a general overview. always pay your bills on time, try to keep your credit card balances between 10-30% of your credit limits. 3-5 credit card accounts. try not to go past that. do not cosign for people who can potentially hurt your credit by not paying on time. the longer your accounts have been established the better. Great job looking toward the future

Jul 31st 2012
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Kiyoshi Inui (Kiyoshi)
#535 ranked lender in California - 109 contributions

Today's Credit MarketoIn today's financial climate, having a high credit score is more important than ever. Good credit is considered any credit score above 720. oYour credit score not only affects mortgage rates and auto loans, but insurance, utility rates, and free qualifying offers from companies like Direct TV. Your credit score also affects job candidacy- more and more companies are pulling credit scores as part of their selection process. What you may not know about your creditoPaying collection accounts most times actually lowers your credit score - once a collection account is paid, it will remain on your credit file for 7 more years.oThe fastest way for you to build your credit score is through the responsible use and exposure to unsecured credit (credit cards).oYou do not need to carry a balance on credit cards for them to report positive on-time monthly payments - they have to report "paid on-time" whether you use that card during the month or not.oThe only date that matters on a credit file, with regard to debt and the weighting of debt on a credit file, is Date of Last Activity (DLA). DLA is controlled by the consumer - it is the date the consumer last made payment or a charge on an account. The statute of limitations (how long an item can remain on a credit file) is tied to this date specifically. With recent changes in the credit score model - what you need to knowoApplying for new credit accounts has less of an impact than before.oHaving high balances on your credit cards will negatively affect your credit - a high balance is a balance greater than 50% of one's limit.oHaving both revolving and installment accounts on your credit report could help your credit score. The new formula takes into account different types of debt.oPiggybacking (authorized user accounts) does help but doesn't carry as much weight on a credit file as it has in the past.oNever close an active account - if you do not wish to use that account going forward - cut up the card, but never close the account. Closing the account stops the positive history from being counted in your credit score

Jul 31st 2012
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Michael Tran (Babytyger)
#650 ranked lender in California - 5 contributions

1. Get a copy of your credit report2. Review your credit, income and assets (401K, checking & savings)3. See what loan you qualify or can affordOC, CA

Jul 31st 2012
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James Barath (JamesBarath)
#9 ranked lender in Indiana - 352 contributions

If don't have the need to buy a home right now, stay focused on paying down student loan debt as well as your credit card debt. This will make you a stronger candidate in the future regardless of how stringent home loan guidelines become. Good for you that you actually want to be proactive and start planning today for the future ahead. Good luck.

Aug 1st 2012
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