Tips To Prepare For Buying A Home
According to a February 2017 article in KTAR News, a person can buy a home without having to rebuild his or her credit. An individual seeking advice had a question about obtaining a secured credit card with the goal of buying a home in the future. A traditional credit card relies on a promise to pay in exchange for a line of credit. Missed payments can damage a credit score. A secured credit card is often used by people trying to rebuild their credit. The credit cards require a down payment and are similar to a prepaid card. The difference is that the credit card company reports payments to the credit bureaus. There are several tips to prepare for buying a home that include your credit score and saving money.
The financial expert told the woman that obtaining a secured credit card is not a good idea. It is not a powerful tool when rebuilding credit or wanting to buy a home. Instead, the most powerful tool to rebuild credit is income.
Having income and less debt helps to rebuild credit. A person has the ability to build wealth because there are no extra payments to make. Having major payments means a person is most likely to not save money. More tips to prepare for buying a home can be found below.
Property in Arizona can be Purchased Without a Good Credit Score
It is possible for a person to obtain a mortgage without a credit score via manual underwriting. However, there is a catch. The individual must have a long history of paying other bills on time. These other bills include rent and utilities. Another way to secure a mortgage via manual underwriting is to pay debts completely off and close credit accounts. Both of these things should be done at least six months prior to trying to obtain a loan.
Save Money in Phoenix Prior to Looking for a Home
Becoming debt free is the ultimate goal prior to buying a home. There are two other things that need to occur before buying a home like building an emergency fund and saving for a down payment. An emergency fund is a way to have money for unexpected expenses like a home repair or mortgage payments if the individual suddenly becomes unemployed.
A down payment is a great way to decrease the amount of mortgage payments in the future. Save enough money as possible to help secure the perfect home.
If you are in the market for a home in the Valley, these tips to prepare for buying a home are just some of the ways that you can get your finances on track.
Contact Cash-N-Go for Any Expected or Unexpected Bills in Phoenix
You may be ready to buy a home or another long-term financial commitment. You can achieve any goal you want, but it may take time.
Cash-N-Go is here for you. We are family owned and operated and are one of the leading title loan companies in the Valley. Our loans have fast approval and fast funding with loan amounts ranging from $200-$100,000. Thus, you do not have to wait days to get the money you need. If you are ever in a financial jam, we are here for you. Contact us for help today.