11 Steps to Buying a Phoenix Home Series-Repairing Credit

Repairing credit to buy a Phoenix home takes time…

buy a phoenix home by repairing bad credit
If you read the previous post in this 11 Steps to Buying a Phoenix Home Series regarding establishing credit we are back to the same notion of maintaining a good credit history. So it will take time.  Repairing credit is all about correcting the negative references on your report and keeping the items in good standing …in good standing!  There are many reasons one might have bad credit. For the purpose of this post and buying a Phoenix home we will address general misuse or overuse, etc. We will not touch on bankruptcy issues, short sales, or foreclosures in this post as they are different in terms of recovery.

Nowadays, you will most likely need a 620 credit score or higher to buy a Phoenix home with traditional financing

Some things to consider when you review your credit report;

  • When you look at your report there are some things you should keep in mind. If you have too many credit lines this could be hurting your score. You would need to pay off and cancel or at least cancel all but a preferred three cards. The cards that you should keep should be the ones you have had the longest. Longer histories with a creditor helps your score. Try to negotiate lower rates on the three that you keep.
  • Pay down balances on all three remaining cards to 30% or less of the credit limit (10% is better).
  • Put together a budget to pay down any outstanding/delinquent payments or satisfy any debt/judgments.  Many times these balances can be settled and negotiated for less than the full amount.

Keep in mind that to buy a Phoenix home is not a given right but a reward and responsibility

Once your credit is in check make sure you take the necessary steps to keep it that way. Set up automatic payments whenever possible. Don’t wait until the last minute to mail a payment to your creditors. Make sure you don’t overspend or have to high of limits. Report any unauthorized use of your credit. Once you implement these strategies it is just a matter of time and history until you have good credit to buy a Phoenix home.  Your preferred mortgage finance specialist can give you a ball park estimate based on your current credit scenario just how long until your credit should be good enough to qualify for the best rates available to buy a Phoenix home.

If you have questions or comments on credit issues that are stopping you from qualifying to buy a Phoenix home please post them below, we would love to hear from you!

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