If you are going to be hunting for a home, be sure to curtail the temptation to go out make purchases that may affect you credit. Obviously you would

For sale by owner has become an extremely popular way to sell one’s home. There are sites such as forsalebyowner.com that allow users to purchase all the legal documents required to make a smooth real estate transaction. Owner’s can also solicit a real estate agent and pay them a flat fee for listing their home on the mls (multiple listing service). This is a great way for owners to increase their home’s exposure. Remember, there are two sides to a commission the buy side (earned from the buyer’s agent), and the sell side, (given to the listing agent). It may be a good idea to still offer commission to the buy side agent. This way, agents are more motivated to bring buyers to your house.

Using your cards to make regular purchases, and paying them off every month in full will also help to increase your score. Make sure to not ever exceed 50% of any cards limit.

This is a list of things to steer clear of when you are seeking to obtain financing for a home. The following items may prove to be a detriment when you wish to move forward with the loan process. 1. Don’t buy or lease an auto! Lenders look carefully at your debt-to-income ratio. A large payment such as a car lease or purchase can greatly impact those ratios and prevent you from qualifying for a home loan. 2. Don’t move assets from one bank account to another! These transfers show up as new deposit’s and complicate the application process, as you must then disclose and document the source of funds for each new account. The lender can verify each account as it currently exists. You can consolidate your accounts later if you need to. 3. Don’t change jobs! A new job may involve a probation period, which must be satisfied before income from the new job can be considered for qualifying purposes. 4. Don’t buy new furniture or major appliances for your new home! If the new purchases increase the amount of debt you are responsible for on a monthly basis, there is the possibility this may disqualify you from getting the loan, or cut down on the available funds you need to meet closing costs. 5. Don’t run a trw report on yourself! This will show as an inquiry on your lenders credit report. Inquiries must be explained in writing. 6. Don’t attempt to consolidate bills before speaking with your lender! The lender can advise you if this needs to be done. 7. Don’t pack or ship information needed for the loan application! Important paperwork such as w-2 forms, divorce decrees, and tax returns should not be sent with your household goods. Duplicate copies take weeks to obtain, and could stall the closing date on your transaction

Another way to increase your credit score is to make a small purchase with a credit card that currently has a zero balance. This serves to activate the trade line with the credit bureaus. Having a small balance with a high credit limit is looked upon favorably by the credit bureaus as well.

If you have a credit card that has available credit and has had a zero balance for a considerable amount of time, you may want to use it for some small purchases. Having a current, active trade line with a small balance can help improve your credit score.

Paying interest only may free up needed cash flow to help make payments on an investment property you may want to purchase.

Often times a real estate investor will want an interest only loan. The low minimum payments help to increase cash flow for other purchases.

When looking to buy a home not only make sure you don’t make any new purchases or take on any new debt but do not be tempted to utilize any buy now and don’t make a payment for two years or any buy now, pay later deals. These may seem very tempting especially if you see a great deal, which always seems to happen when you are buying a new home, but a lender will still require this to be added to your debt to income ratio. If you can not show proof of what the minimum payment is going to be on one of these deals, generally the lender will require 5% of the balance to be used for a payment to include into your debt ratio. This can ultimately affect your approval, your rate or both. So wait until you get the house and you have closed on your loan to go out and start buying.

When you are shopping for a new home, be sure to not go out and make any major purchases. Once you are reproved for a new home, the worst thing you could do is change you current situation. If you are also looking to purchase a new car, then wait until you have closed on the new home. Any major purchase, could increase your debt to income ratio (dti), and unqualified you from purchasing your new home.