There are many different tactics and methods that can be used to increase your credit score. Make sure you read this entire article before making any changes because not following instructions can potentially cause a drop in your score.

First, remember that credit scoring is determined by an algorithm, which means the effect that a particular action will have on the credit score will depend on many factors. There is no way to know for sure what effect a certain action will have without using a credit score analyzer. For example, a person who has 15 collections and only pays off one of them might not see the same level of score improvement as a person who only has three collections. There is no way to know for sure what effect certain actions will have on your credit score without using a credit analyzer.

Here’s a summary of some actions that may increase your credit score:

If you have credit cards and other revolving accounts:

• WATCH THE BALANCES ON YOUR CREDIT CARDS. Credit scores are

One of the most effective ways to quickly increase your credit score is by managing your credit card accounts wisely:

• Always try to keep the balance below 50% of the credit limit. The credit bureaus tend to add points for accounts under 50% of their limits and remove points for accounts with balances over 50% of their credit limits. Paying them to below 25% of their limits can have an even greater impact. And once you do that, try to keep the balance below those limits, EVEN IF you make large payments every month. Your credit card company will usually only report the balance to the bureaus once a month, and usually at a time when the balance is at its highest. So don’t assume that paying off your balance every month will mean your credit score will always be the highest possible. If you regularly exceed the limit by 50% in any given month, then you should consider switching to a different credit card once you hit that limit to keep the balance from affecting your credit score.
• If you can’t pay down the balance, try asking for an increase in your credit line. Let’s say you have a credit card with a $7,000 balance and a $10,000 limit, but you can only afford to pay the balance down to $6,000 at the present time. If you increased your credit limit to $12,000, the balance would drop to 50% of the available credit, and your score would likely increase. But be careful to do this with discipline and resist the temptation to charge your balance even higher, or you’ll end up creating more problems than you solved!
• Don’t close credit card accounts, especially if they’ve been established for a long time. I can’t tell you how many times I’ve seen someone’s credit scores drop substantially just because they closed a credit card account that had been established for a long time. The length of time credit has been established makes up 15% of your credit score, so open accounts can still have a positive impact, even if they aren’t being used. If you want to close a credit card account because you no longer want the temptation of “easy credit”, then just cut up the card but leave the actual account open. Unless you’re being charged a substantial annual or monthly fee, there’s little harm in keeping the account open.

Do you want to get on the fast track to buying a home but aren’t sure if your credit is up to par? Need some advice on what to do? Fill out our quick contact form and we’ll help you get started!

Many Dallas area home buyers are looking to cash in on the potential upfront equity that buying a foreclosure may provide. It goes without saying that there is a large nubmer of foreclosures available in the Dallas area simply because of the slow real estate market coupled with the foreclosure epidemic. Buyers need to know the possible advantages, as well as the potential pitfalls, associated with foreclosure transactions.

First of all, most lenders that are selling foreclosures require a specific bidding process for buyers to submit an offer. This bidding process varies from one lender to the next, but many will publish a specific bidding deadline and then will take the offer they feel is the strongest. Just because one buyer has a higher dollar offer than another does not automatically mean they will be chosen as the winning bidder. Lenders also consider other factors, such as the closing date, the stregnth of the buyer’s credit profile, the amount of closing costs the buyer is asking the seller to pay and also even the type of financing the buyer is choosing to use.

There are definitely some potential advantages to buying a foreclosure, most notably the potential opportunity to have some upfront equity in the property. Many foreclosures are, indeed, sold below “market” value, but often times their overall condition is weighted into the price. This means that a home selling for $20,000 below market might require a significant amount of improvements in order to be brought up to the same condition as other homes in the neighborhood.

Also, there is normally quite a bit of competition, especially among investors, for foreclosures. Some entities, such as HUD, give priority to owner-occupant bidders. Every lender is different, so consult with us prior to making an offer to purchase on any foreclosure property.

Foreclosures will likely continue to be abundant for the next several years in the Dallas real estate market. And while this may certainly present some opportunities for Dallas area home buyers, they should also consider looking at non-foreclosure properties as well. Home sellers who need to sell their home quickly in this tough market are often opting to sell for less than market value in cases where they have enough home equity. So buyers who are of the opinion that they must only look at foreclosures in order to get a home that is below market may be passing up some really good values.

Visit our site for more information for Dallas area home buyers and sellers.

Q:  Why should i consider refinancing my current home loan?

A:  There are several different reasons to refinance your home.  The most popular is to lower your monthly payments and saving on interest expense.  Another is to tap in to the equity of your home with a cash back refinance.  Everyone situation is different.  We’ll tell you whether or not it makes good economic sense for you to refinance.  The numbers wont lie, see for yourself!

Q:  How do i calcualte my monthly payments?

A:  Use our mortgage calculator.  Fill in the blanks with accurate data and click “calculate”.  Find out what your proposed monthly payment is in seconds.  Depending on where you are purchasing will dictate things like property taxes and insurance.  Consult with a good realtor for more information about the property taxes in your area. 

Q:  What is the minimum credit score needed to qualify for a home loan?

A:  The answer to this question has changed frequently over the past year.  FHA loans typically require a minimum FICO score of 620.  There are instances to where you can go down to a 580 with compensating factors.  Conventional conforming loans differ depending on down payment.  A 720 credit score is what you will need with a 5% down payment.  Before you apply for a home loan get a free credit report and see where you stand.

Q:  What can i do with my home equity loan funds?

A:  Anything you want to.  Consolidate higher interest rate debts for lower total monthly payments.  Make home improvements.  Take advantage of potential tax deductibility on the mortgage interest you pay.  Consult your tax advisor to make sure you qualify for interest deduction.

http://www.4bestrate.com Home Loan Education, Mortgage Calculator, Premium credit monitoring with Free Credit Report offers.

When buying a home there are four main players involved and all play a key role in this process to ensure that the closing happens on time. The Borrower, the Realtor, Mortgage Broker and Title Company must all do their part to make it happen.

Lets start with the borrower. First things first. Obtain a credit-checked pre approval before you shop for a home. Get with a good mortgage broker and find out what you can qualify for. Use a mortgage calculator to determine what your monthly payments will given different scenarios. Make loan application as soon as possible and gather together every document requested. You don’t want the closing to be delayed because you took forever to send your loan officer a recent pay stub!

The Realtor must set realistic expectations upfront and throughout the transaction with the listing agent, the seller and borrower in regards to potential closing dates. Under current market conditions and changes in lending disclosure it is wise to plan for at least a 30 day close. Your realtor should provide the Title Companies contact info to your mortgage broker as early in the process as possible.

Your Mortgage Broker should be quick to take a written application and get all of the required disclosures submitted for processing as soon as possible. Here is where you will be provided with all of the various loan product options available to you. Your lender will help you understand timelines and anything that can impact the closing date. The most significant change in lending regulations that is affecting closing dates lies with the Truth in Lending Disclosure. The final APR cannot vary more than .125 from the initial disclosure. The crazy thing about this is that the Good Faith Estimate is what calculates the APR. Should the rename it Good Faith Exact? I don’t think so. It is an estimate for a reason. No one knows exactly what the total fees are going to be until you are well in to the transaction. For example, not all transactions need a survey. Fees vary depending on the loan product. Your APR will change from the initial application. And if it changes more than .125 your lender must re disclose this and you have to wait three days to close. The lawmakers are pretty stupid but these are the facts. To avoid delays lenders are having to scramble the week before closing to make sure that they properly disclose the APR to you. At that point its too late to switch lenders so what’s the point. However, it must be done to make sure you don’t suffer any closing delays.

The title company must gather the title commitment, insured closing letters and uncover any potential breaches of title as early as possible. They must also work proactively on providing a preliminary closing statement with accurate fees to lenders enabling them to issue the Truth in Lending at least a week before closing to avoid delays due to inaccurate APR calculations.

Everyone must work together to make it all come together. Open communication is vital so that everyone is on the same page. Find the right lender and realtor and you will be just fine.

http://www.4bestrate.com Use our mortgage calculator, find the best home loans, protect your identity with our premium credit monitoring and get a free credit report.