Improve your credit score with these simple strategies:
One thing that can adversely affect purchasing real estate is a poor credit score. A credit score is a three-digit number of great importance in the American economy; it explains simply how you manage your economy and face debts. It talks about your financial commitments. For example, it is very common for people who pay cash, even if they have excellent incomes, to have low credit scores because the important thing is how much income a person generates and how that person manages their credits.
Most people in our society don’t give much thought to their credit score until they need to make a big purchase or take out a loan. For most of us, a property is one of the most significant investments we can make, and it is almost always necessary to have a bank loan to achieve it.
When you apply for funding, a low credit score could result in:
-Higher interest rates than usual.
-Delay in approving the credit.
-You may be required more proof confirming your income.
-The refusal of the loan by the potential lender
5 things to keep in mind to improve your credit:
-Keep a balance: Knowing your score is the first step, and the most important recommendation is that you pay the balances you have on all your credit cards. This helps to increase your score. It’s OK to use one of your credit cards, but always keep your monthly balances as low as possible. We recommend using no more than 30% of the available credit to maintain very good credit.
-Pay on time: If you want to increase your credit score, this is another effective way to achieve it. While this may be easier said than done, it’s important to make sure that all payments to every credit card and loan are made on time. Don’t take longer than 15 days, or it will start to reflect negatively on your credit score.
-Open new accounts: Opening new credit card accounts can quickly improve your credit score.
-Don’t make big purchases: These charges make your credit look weak. Don’t make big purchases before you apply for a mortgage loan; this includes, but is not limited to, going on a long and/or expensive vacation, buying a car, and any other valuables.
-Plan: Improving your credit score isn’t something you can do overnight. Credit repair can take months. So be patient and plan for the future.
What do I need to consider when looking for rent?
First of all, you should meet with a real estate agent and make sure they are professional and trustworthy. This will be your best ally since your real estate broker must always verify websites and online ads so that you don’t fall victim to scams or other crimes.
Set a price and select a location: Prices vary depending on the city you select, the location, and the amount of square footage you need. The rent adjacent to universities, airports, and large companies or business centers increases the cost of real estate.
Get all the requirements that may be required for rent: It is important that before viewing properties, you obtain documents such as your proof of income, payroll, or bank accounts to show the landlord that you have to pay rent.
Get only properties that are within your budget: When it comes to renting, you have to be aware of how much you can pay because that is a variable that also takes into account the tenant. Your real estate agent should guide you through this process by sending you a list of options that match the characteristics they set about the search.
Establish a rental offer: Before placing an offer, the real estate agent will analyze comparables where he will show you the last units rented in the community you have chosen. That way, present a fair offer to both the owner and you.
Participate in the neighborhood association or management company: To apply for most rental housing, you must fill out an application or form, pay an administrative fee and submit the requirements in writing or email.
Here are some documents you may need:
To rent a home in any American city, you need the following basic requirements (they may vary):
-Credit record with a score above 620.
-Valid identification of the state.
-Demonstrate income of at least 3 times the value of the rent.
-Police record: no criminal record and/or record of evictions in the last 3 years.