Millennium Realty



Posted by Millennium Realty on 11/25/2021


Everyone talks about preparing financially to purchase and own a home. However, it’s not always exactly clear how to prepare. Rather than get overwhelmed by details, there are some basic things you can start with in order to get your finances ready for home ownership. Here we will go over the best ways to prepare.

Take Care of Your Credit Score

Unfortunately, there is no quick cure for a low credit score. It’s based on a lot of long-term factors like bill payment history and age of your credit accounts, so it’s difficult to boost your score short term. However, the more you prepare for buying a home, the better—and creating and maintaining good credit habits will help you in the long run. The first thing you can do is sign up for a free credit monitoring service so you are aware of your starting point. You can also identify any errors that might count against you so that you can dispute them. Some other things you can do are:

  • Hold off on opening any new credit cards or loans to avoid “hard inquiries” on your credit

  • Set up auto-payment with any recurring bills to avoid late payments

  • Don’t completely close any old accounts, even if you don’t use them anymore

These are just the basics and while they are general best practices, only consider them in your own credit situation. For detailed financial advice, always consult a professional.

Start Saving for a Down Payment

The down payment on a new home is the largest upfront expense to prepare for. The size of the down payment will depend on the terms of the mortgage you choose, as well as the purchase price of the home. However, most experts recommend aiming for 20% of the price on the home. While the amount you need in the end might be lower, consider the advantages of saving more than not enough. Some simple strategies for saving up for this expense include automatic deposits into savings and redirecting funds you would normally contribute to a retirement fund. Everybody is different, and it’s important to consider the details of your particular financial situation. Hiring a financial advisor who can create a customized savings plan is a great idea for getting the most savings possible.

Look Into First-Time Homebuyer Assistance Programs

Among the myriad loan options available for homebuyers, there are some programs that exist specifically to help first-time homebuyers. There are various forms of financial assistance available, including special mortgages with low interest rates or tax credits. You can usually find these types of programs available through state governments. Take some time to research whether your state offers any financial help in buying your first home — it might surprise you how many opportunities are available.

The financial aspect of buying your first home is complicated and so is saving for it. However, if you follow these general best practices, you’ll be creating a solid foundation for yourself and your financial future.





Posted by Millennium Realty on 4/18/2019

Your credit score can play a major role in your ability to get the financing that you need to buy a house. As such, you'll want to do everything possible to improve your credit score before you enter the real estate market.

Now, let's take a look at three quick, easy ways to boost your credit score.

1. Pay Off Debt As Quickly As Possible

Get a copy of your credit report from each of the three credit reporting bureaus (Equifax, Experian and TransUnion). You are entitled to one free copy of your credit report annually from each credit reporting bureau, and you should take advantage of this perk so that you can learn about your outstanding debt.

If you have lots of outstanding debt, you'll want to start paying this off as quickly as possible. Because the less debt that you have, the more likely it becomes that you can get a favorable mortgage from a credit union or bank.

Don't wait to begin paying off outstanding debt. If you pay off even a small portion of your outstanding debt regularly, you can move closer to getting the financing that you need to acquire a terrific house.

2. Avoid New Credit Cards

A low credit score can be worrisome, and it may cause you to consider a variety of options to manage outstanding debt. However, if your credit score is low, there is no need to take out additional credit cards.

New credit cards may seem like viable short-term options to help you cover various expenses while you pay off assorted outstanding debt. But these cards are unlikely to help you resolve the biggest problem – paying off your outstanding debt to bolster your credit score.

Instead of signing up for new credit cards, it often helps to cut back on non-essential bills. For instance, if you don't need cable, you may be able to eliminate this expense and use the money that you save to pay off outstanding debt. Or, if you have first-rate items that you don't need, you may want to sell these items and use the profits to pay off myriad bills.

3. Keep Your Credit Card Balances Low

Once you have paid off your outstanding debt, you'll want to keep your credit card balances low.

It often helps to have one credit card that you can use in emergencies. If you keep one credit card and get rid of any others, you may be better equipped than ever before to maintain a high credit score.

Lastly, if you require additional assistance as you prepare to kick off a home search, you may want to work with a real estate agent. This housing market professional can help you narrow your home search to residences that fall within a specific price range. That way, you can avoid the risk of spending too much to acquire a house.

Increase your credit score – use the aforementioned tips, and you can raise your credit score before you launch a home search.





Posted by Millennium Realty on 4/19/2018

Did you know that you could drastically improve your credit score in just a year? Or that there are things that you can actively be doing to keep up your good credit score and make it to excellent? Improving your credit score involves improving many pieces of what makes up a credit score. The tips here are twofold. If your score is low and you are looking to greatly improve it, then you must first figure out why. Review the tips below to see if any listed can help you deal with your credit pitfall(s). If you have an average to good score and just want to improve it as much as possible then each of the steps below can give you insight into how to do so. Balances: The amount of revolving credit you have compared to the credit that you are using is a large factor in your credit score. It’s best to keep your balances from all of your credit cards under 30% of your revolving credit. Even if you pay off your credit cards every month, the amount of credit you are utilizing is recorded. In short, keep balances low, but also keep paying them off each month so you do not end up with a balance than can’t be immediately paid off. Credit Inquiries: Hard credit inquiries show up on your report for 2 years, but only affecting your score for around a year. Hard inquiries show that you are looking to use additional credit and too many hard inquiries in a short amount of time can negatively affect your credit score. One or two within a year’s time will not significantly affect your score but as that number gets higher it will. One way around this is to make those couple of inquiries within a 30-day period. FICO will count those inquiries as one since oftentimes multiple inquiries in a short period of time results in one loan— meaning you are not in search of multiple lines of credit/loans. But it’s best to be cognizant of this and strategic in how you view your credit report or apply for loans and credit cards. Payment History/On-Time Payments: If you have struggled with paying your bills on time and have seen a suffering credit score then this then would be a main reason behind your low score. And it’s time to take action and change that. This is one of the main factors in your credit score and therefore significantly impacting your score, either negatively or positively. It’s important to do everything in your power to pay all bills on time. Even being just a couple days late on payments will have affect. Length of Credit History: Length of credit is not necessary something that you can completely control. But it does have an affect on your credit score. As the length of your credit increases, and given that you are responsible with your credit, your score will improve. The most important piece to remember here is to be responsible with your credit. So what are you waiting for? If you haven't already, sign up for a free credit score site or find out if one of your credit card companies offers it. Frequently checking and seeing your score rise will provide you with the gratification you need to keep on track.





Posted by Millennium Realty on 5/5/2016

Credit cards can be a great source of safety and  convenience but they can also be trouble. Buy now and pay later can have serious consequences and lead to financial trouble. So in order to stay financially fit it is important to use your credit cards wisely. Here are a few tips to help you make the most of your credit cards: • This seems simple but pay off your balance every month in full.  Interest charges on your credit card purchases can add up fast. • If you do carry a balance, pay back as much as you can as quickly as possible. You don't have to wait until the payment due date. • Avoid using your credit card to withdraw cash or transfer money. Interest is charged on these transactions immediately. • If you are considering a card with an annual fee, be sure that whatever reward or benefit you're getting is worth the cost. Bottom line stay within your budget. Only use credit cards for things you can afford. If you can't afford it don't buy it. You will be much happier without the new sweater when you have enough money to buy a new home.




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Posted by Millennium Realty on 9/17/2015

If your credit score could use a boost it isn't as simple as just changing bad financial behaviors. Increasing your credit score is a process that takes time. The time it takes to improve your credit history can vary. Late payments can remain on your credit report for seven years, but typically if you clear all past-due debts and pay on time from then on, your score can begin to recover quickly. One late payment doesn't hurt you that much but a pattern of bad payments will really hurt you.  If you have a few late payments continue to use credit and pay on time every time. Demonstrate that you are managing your fiances well and your scores will begin to climb. If you have suffered a bankruptcy the effects can be long-lasting. According to myFico.com, a Chapter 13 bankruptcy can linger for seven to more than 10 years on your report. A Chapter 7 bankruptcy, or total liquidation, can affect your record for 10 years. It is vital to constantly monitor your credit report and review it for accuracy. You can obtain your report for free once every twelve months from annualcreditreport.com.







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