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    Clearing Your Credit is Important Before Buying Los Angeles Area Real Estate

    Happy with couple that were just sold a home tooWhen our clients come into our offices to talk about real estate, credit always comes up.

    They want to let me know their FICO score. Some are off the chart at 850+ and some are much lower than that.

    Some tell me that they have heard that banks are allowing those with very low FICO scores buy real estate. I have had people me that they had heard they could buy with a sub 600 Fico Score.

    Clearing credit is an important step before buying Greater Los Angeles real estate, or real estate anywhere for that matter. An overwhelming number of people have errors on their credit reports and are completely unaware of these errors. In addition many people don’t realize that their credit reports can be cleaned up and, as a result, improved.

    One of the things that we talk about in our Crash Course on Real Estate in our Paris911 Team’s offices at REMAX of Valencia, is the fact that any buyer should never make any modifications to their credit profile while they are in the process of buying real estate.

    Meaning, if you are buying a home, actively looking, in escrow, or about to close, even one day before closing, don’t go out and buy anything new, don’t pay off credit cards, don’t change your balances dramatically, don’t finance bedroom furniture, don’t open a new Macy’s Charge Card.

    A good credit report is essential to securing the lowest interest rate possible on a home loan. More importantly a lower rates can save a borrower a great deal of money over the lifetime of a loan.

    So, the question is, have you taken a look at your credit report lately?

    Here are a few steps you can take to ensure the best credit report possible.

    • First and foremost get a copy of your report and check it for errors.
    • If you find errors on your credit report make the phone calls necessary to clear up these mistakes.
    • Make sure you pay down your credit cards, clearing balances whenever possible. Whatever you do not max out your cards.
    • If you have had difficulties with your credit wait 12 months to apply for a loan.

    There a re numerous smart financial choices you can make to ensure a better rate on a home loan. Contact your Greater Los Angeles Areas REALTOR® today for more information on financing real estate and get personal recommendations for lenders that have a great reputation in your area.

    Our Team hates the misinformation that spreads like wildfire about credit scores and the ultra low being able to get approved for a loan on a home they want to buy.

    Make sure you are speaking with the “reputable” when it comes to lending and obtaining pre qualification for a home loan. Make sure they are explaining everything to you when asking and even interject with information that you can use to keep safe when approaching the lending arena.

    We are Glad to Be of Service and Talk with you tomorrow. We are REMAX’s Paris911 Team of Greater Los Angeles Realtors.

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