Tips for Home Buyers

Have you been renting for years but you aren’t seeing an improvement in your credit score?  Well that is because the credit bureaus don’t collect information on rental history, but you can make them pay attention.  Check out this new service I stumbled upon.  There are a few companies out there that do this, so check to see which one is right for you.


Here is a great resource I recently stumbled across.  If you are looking to buy your 1st home, restore your credit, or modify your existing home loan, you should really check out this resource.  Home Again Nevada  or you can call them at (855)457-4638.


5 tips to improve your credit score

If you’ve pulled your credit score and are disappointed by what you see, here are some simple things you can start doing now to improve your score.

1. Get it right 

Accuracy is the first thing to address and the fastest way to boost your score. Find and fix any mistakes that could be pulling your score down. Your credit score is based on the information contained in your credit reports. For someone who has never seen a credit report or hasn’t checked in several years, I recommend getting all three and looking at all of them, because each contains different information. For those who check regularly, use the free credit reports to monitor your accounts. Stagger your requests for the free reports so you see one every four months. With ID theft running rampant, it seems like you need to check more often these days; perhaps checking once a year isn’t enough anymore.

Tip: Request free credit reports from each of the three credit reporting agencies.

2. Pay your bills on time 

Paying on time helps build a healthy payment history. And, as the largest factor in determining your credit score (at 35 percent), it’s the best way to rebuild damaged credit. Even if you’ve had credit problems in the past, depending on how many creditors were involved and how far past due your accounts were, a good 12-month payment history can usually produce noticeable results. If you fell off for a few months, a solid year of in time payments could get you back on track.

Expect information about past-due payments to stay on your report for up to seven years. Your score can still improve during that time as long as you make steady, on-time payments. Seven years after the date of last activity the mark may drop off, but the avenues of collecting the money may not be closed. While the statute of limitations on reporting is seven years, the length of time for attempting to collect varies by state and a collector may file a lawsuit against you. In that case the negative mark will reappear as a judgment against you.

3. Step away from the edge 

If you think you’re doing everything right, take a look at the amount of your outstanding debt and your debt-to-credit ratio. Reducing your credit card balances will score you points and is especially important if you are flirting with the limit on any of your cards.

You never want to be maxed out, and ideally you’ll be using only about 40 percent of your limit on any one card. Spreading debt between cards is better for your credit score than keeping it all in one place.  Next, focus on the amount of outstanding debt on each account; if you have a $1,000 credit line and you owe $800 on outstanding debt, then you are above the 70% threshold that the credit bureaus will look at to identify a higher risk and therefore driving your credit scores lower, because it appears you are at or near maxed out on that account. On this same account, if you paid down the balance below the 30% threshold (balance would be below $300 now), now you appear that you are managing your debt, therefore the credit bureaus see you as a less risk and reward you with higher credit scores. 70/30 rule.

Closing out an account and transferring that over means that you’re increasing your debt ratio. You’re reducing the overall amount of available credit and driving up the balance on the other.

4. Commit for the long haul 

Fifteen percent of your score is determined by the length of time you’ve held a credit relationship. Don’t close any accounts if you plan to shop for a mortgage or other loan for which you’ll need a good score. Opening new cards and closing old accounts negatively impact your credit score in the short run, so avoid making these moves shortly before applying for a large loan.

While you’ll want to have a couple of cards to develop a credit history, adding more credit card debt can be a dangerous thing; limit the amount you get to two and keep balances low and pay them off quickly. It’s not necessary to have more than a couple of credit cards, and be careful using them because life circumstances can change.

5. Look before you leap 

When you apply for a loan or a credit card, lenders check your credit. These inquiries can put a temporary dent in your credit score if there are too many of them all at once. Start your loan search by shopping and comparing rates rather than applying for a loan first and deciding later. If you can do all your shopping within the same month, all the better. Mortgage and auto loans are counted as one inquiry if they fall within a 45-day period in the FICO scoring model.

Inquiries have the least impact as far as overall weight. Inquiries, types of credit and the number of loans you have play into the remaining amount of your score.

~Posted with permission courtesy of Jonathan Hunter Nevada State Bank.


Here is an educational program that is designed to help you prepare for your new home purchase brought to you by Wells Fargo Home Mortgage:

Click on this link for a step by step walk through:


After you have purchsed your new home you will want to protect it.  You can Homestead your primary residence in the State of Nevada.  Here is some information on the Nevada Homestead Law:  You can download, print the form and find more information.  As always with legal matters please consult an attorney prior to taking any action if you have questions.