Toni Loren | Re/Max Gold

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Five Things to Do Before You Buy a Home in Reno, Nevada

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Buying a home can be a stressful and confusing time for many homebuyers, but it does not have to be. One of the first things you should do when you are considering buying a home is to know your credit score.

Tip #1: Get your credit report for free

Several factors come into play to get a home loan, but your fico or credit score is the most important.  You can check your credit report and get your scores online for free. The fair credit reporting act requires each of the nationwide credit reporting companies, such as Equifax, Experian, and Transunion, to provide you with a free copy of your credit report, at your request, once every 12 months once you have your credit report be sure to review it & check for any errors.

Tip #2: Look for errors on your credit report

Mistakes on credit reports are bigger issues than you may realize. If you do find inaccuracies, you can dispute them with the three major credit bureaus.  They have 30 days to investigate your dispute. They will correct the item in question if they find it inaccurate.

The higher the credit score, the more likely you will get approved for a home loan. So check what you can do to improve your score.

Tip #3: Improve your score before applying

A few points difference in your credit score can be the difference in whether you qualify for a home loan or not.  There are a few things you can do to increase your scores.  First, pay down the balances on your credit card balances. This ratio accounts for 30% of your overall credit score. Only payment history has a bigger impact. For example, if your credit limit is $10,000 and your balance is $6,000, your utilization ratio is 60% which is remarkably high.  The lower your credit card balances are, the higher your credit rating will be. Some credit experts advise keeping your balances below 20% of your credit card limit.

The next thing you can do is to make all your payments on time. 35% of your credit score is based on your payment history, so paying all your bills on time is important. If you’re forgetful, you can set up auto-pay with your creditors so you never miss a payment.

If you want to buy a home, do not apply for or open any new credit.  This means holding off on buying a new car or opening a credit card until after you close your mortgage.

Tip #4: Check your savings

 You need a certain amount of cash in the bank to buy a home. If you are living paycheck to paycheck, then it is probably not the ideal time to apply for a loan.

There are more upfront costs associated with getting a mortgage loan besides the down payment. There are closing costs and fees that you will need to pay the appraiser, lender, and title company, so you must ensure you have enough cash on hand when you get ready to close.  And one of the most important things you should do before you go out looking for a home is to get pre-approved.

Tip #5: Get pre-approved

A pre-approved means you have completed a mortgage application and a mortgage lender has checked credit and verified income and assets and savings,  and your lender will be able to help you through this process.  Most sellers today will not even consider an offer from a buyer who has not already been pre-approved, so plan on meeting with your mortgage lender before you go shopping for your home.

Buying a new home is exciting, and there are a few simple things you can do before you start looking that will help you through the process.


Are you ready to buy a new home? Call me to learn about exciting opportunities in today’s real estate market.