subject: Evaluate Your Credit Worthiness Before Buying Miami Luxury Condos [print this page] Why its important Why its important
Credit worthiness is important when buying Miami luxury condos, or any real estate property for that matter. This is one of the way your lender will decide if you are, well, worthy of the loan you're applying for. One of the basic ways to check for your credit worthiness is to obtain your credit report from the three crediting bureaus. If you're already financially savvy, you may have developed the habit of ordering your report every year for review. This is laudable, indeed. But for those who just recently caught wind of the importance of reviewing the reports, here are some tips.
First, recover all your financial records. This is important when reviewing your credit report especially if you find any negative remark. In order to determine if the negative information is true or false, you must compare it with your financing documents. If found erroneous, quickly send a letter to the bureau with evidence to back it up, of course.
If the negative remark is true, though, it will definitely affect your credit score and chances of landing a good mortgage term. Repairing it is your only choice. In average, it takes about two years to repair a credit, but there are also other things to boost it up. For instance, continuously making updated payments to your other loans is an effective booster.
What comes next?
Next, you need to determine your debt-to-income ratio. Lenders generally consider buyers with less than 33 percent as low risk. If you find yours to be higher than 33 percent, start paying some bills and making updated monthly payments.
Of course, you also need to come up with your down payment. Nowadays, its hard to find lenders who only require 10 percent of the total home value as down payment. If youre finding it hard to come up with more than 10 percent, consider HELOC or piggyback loans. You should, however, ponder upon these loans thoroughly, and discuss it with your broker. This is a particularly difficult move that carries a lot of financial risk. Always open yourself up for other safer options.
