WAYS TO ESTABLISH GOOD CREDIT HISTORY SCORE: Part-2

Having a good credit history score is good, no matter what is your financial goal, but the very first step of mortgage home loan is credit history score. When you will apply for the mortgage with the loan application, your lender will look after some factors. The credit score is one of the important factors which your lender will check to approve the mortgage home loan.

A credit score is a single number made up of all your credit history. It is also known as FICO® credit score. While giving an approval, credit history score will help your lender to determine your creditworthiness. This is the same for other loans which everyone generally required like the car loan, credit card and many more. The factors on which credit score is based upon:

• Payment history – 35%
• Debts owed – 30%
• Length of credit history – 15%
• New credit accounts opened – 10%
• Healthy mix of credit (credit cards, loans, etc.) – 10%

WHY GOOD CREDIT HISTORY SCORE MATTERS

Buying a home is not just about choosing a perfect home for your future. You have to be prepared for the biggest investments you will make throughout your life. When you will apply for a home loan, your lender will check few details to ensure you can afford the monthly installments or not. If you have the good credit score, then your lender will happily approve your home loan. If you have bad credit score then it will be difficult for you, but that doesn’t mean it is impossible, you can improve your credit history score easily.

HOW TO ESTABLISH GOOD CREDIT

There are many ways to build a good credit score, but it will take the time it can’t happen overnight. You can start building your credit whenever you will feel like because it’s never too early to start as the sooner you will do, it will easy for you to buy a home. In this article, we will discuss some methods for building a strong credit history score.

KEEP YOUR OLDEST LINE OF CREDIT OPEN

It is important to building a credit history score. As everyone knows that no one is born with perfect credit, you can only develop your credit through your movements over time. If you want to take benefits early, you can start maintaining your credit as early as you can. For example, if anyone takes out the student loan at the time of college, by taking that loan their credit will establish automatically. It is an opportunity for young adults to start building their credit history score at a young age. If they will pay their loan on time and pay bills in time, they will possibly get their first mortgage property at the age of 24.

AVOID BIG PURCHASES WHEN YOU PLAN TO BUY

If you want to purchase a home, you should pay attention to some of the common facts. If you are planning to purchase a big, then there are more chances of getting approved for a loan even if you have worked hard to build your credit history score. So, you should avoid purchasing a big home until you feel like you are financially comfortable affording the purchase.

MAKE PAYMENTS ON TIME

If you want to build a good credit history score, the main significant is you should be responsible for your financial decisions. If you will be financially responsible then you will have the ability to get a new line of credit like home loans and other loans. There are few steps which you can follow to be financially responsible. You should pay all the bills on time, bills like medical bill, car installments, mortgage, or any other type of bills which have due dates. If you pay after the due date of the bill, it can damage your credit score. So, make sure you pay your bills before the due dates in order to build a strong credit history score.

BUILD YOUR CREDIT FROM SCRATCH

You don’t have to feel discouraged at the beginning of your credit history score. It is easy to build your credit history score. There are simple methods which you can use for getting started.

Become an authorized user on someone’s credit card

You can be an authorized user of your any family member who is willing to add you as an authorized card user, by doing this it will easy for you to build a good credit history score. But, you should care about the monthly payments for the card. Because if the family member doesn’t make monthly payments on time, then it can affect your credit history score.

Apply for a secured credit card

You can only apply for a credit card if you have a saving account. Because the money which you have in your account, the creditor will take it as collateral to secure the card. You can build good credit history score by making payments through credit card. If you are making payments from credit card then you have to pay off the balance also.

FINAL THOUGHTS

By following all these steps and the steps which we discussed in the previous blog, you will be on a right track to build your credit history score or to improve your credit score. If you will need any help, you can contact us at (818) 322-5626. We know that sometimes people have a harder time getting a home loan. That’s why we offer multiple different alternative financing options. You have to be careful and avoid making any costly mistakes. Our competitive rates, efficient services, and talented team can help ease the process of the home loan.

We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. 3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax returns, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today and our specialists will be in touch promptly to answer your questions. We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.

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WAYS TO ESTABLISH GOOD CREDIT HISTORY SCORE: Part-1

Having a good credit history score is good, no matter what is your financial goal, but the very first step of mortgage home loan is credit history score. When you will apply for the mortgage with the loan application, your lender will look after some factors. The credit score is one of the important factors which your lender will check to approve the mortgage home loan.

The credit score is single number made up of all your credit history. It is also known as FICO® credit score. While giving an approval, credit history score will help your lender to determine your creditworthiness. This is same for other loans which everyone generally required like the car loan, credit card and many more. The factors on which credit score is based upon:

• Payment history – 35%
• Debts owed – 30%
• Length of credit history – 15%
• New credit accounts opened – 10%
• Healthy mix of credit (credit cards, loans, etc.) – 10%

WHY GOOD CREDIT HISTORY SCORE MATTERS

Buying a home is not just about choosing a perfect home for your future. You have to be prepared for the biggest investments you will make throughout your life. When you will apply for a home loan, your lender will check few details to ensure you can afford the monthly installments or not. If you have the good credit score, then your lender will happily approve your home loan. If you have bad credit score then it will be difficult for you, but that doesn’t mean it is impossible, you can improve your credit history score easily.

HOW TO ESTABLISH GOOD CREDIT

There are many ways to build a good credit score, but it will take the time it can’t happen overnight. You can start building your credit whenever you will feel like because it’s never too early to start as the sooner you will do, it will easy for you to buy a home. In this article, we will discuss some methods for building a strong credit history score.

CHECK YOUR CREDIT HISTORY SCORE

The first thing you should know is your credit score. You can check your credit history score at annualcreditreport.com. You can also check with bureaus like TransUnion, Experian, and Equifax. The credit report will also show the errors which are listed. And if you want to improve your credit score, it is good that you have the errors on which you have to work.

MAINTAIN LOW CREDIT BALANCES

While it’s good to have open lines of credit, you want to be mindful of the debt balance you’re carrying. If at all possible, it’s best to pay off your credit card balances in full each month.

You can maintain low credit balance by maintaining your debt balances. You can pay off your credit card balances in full each month, this will lead to maintaining a low debt-to-income ratio as you are very responsible for utilizing your credit lines. The lender will check your debt-to-income ratio and they will only approve when you have less than 43%. If you will maintain a low credit card balance, it will help you to build your credit score.

PAY MORE THAN THE MINIMUM

While paying off the credit cards they have the minimum amount which you can pay off monthly, but if you want to make a large payment then it will give importance to your creditworthiness. It means that you will chip away at your debt balances very quick and you will end up paying off with less interest over time.

FINAL THOUGHTS

By following all these steps, you will be on a right track to build your credit history score or to improve your credit score. In the next article, we will discuss more steps. If you will need any help, you can contact us at (818) 322-5626. We know that sometimes people have a harder time getting a home loan. That’s why we offer multiple different alternative financing options. You have to be careful and avoid making any costly mistakes. Our competitive rates, efficient services, and talented team can help ease the process of the home loan.

We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. 3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today and our specialists will be in touch promptly to answer your questions. We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.

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TIPS FOR FIRST TIME HOME BUYER USA: 3CALoan

Buying a new house is an exciting and good investment. If you are first time home buyer USA, you should know where to start. It can be complicated and even scary for you. But if you know some tips, then you can buy your first home easily. In this article, we will discuss some helpful tips for every first time home buyer USA.

CHECK AND MANAGE YOUR CREDIT

When you will apply for a home loan, your lender will check few factors and they will also check your credit score. It is one of the important factors. The credit score is the number ranging from 300 to 850. Your credit score will base upon the factors like your payment history, types of credit used, outstanding balances, the number of credit inquiries you have done, and length of credit history.

By credit score, your lender will get some idea about your creditworthiness and the risk they will take by lending their money to you. The interest rate and type of loan will be based on your credit score. If you have the low credit score, it will be bad for you. And if you have the good credit score, it will better for you. If you don’t know about your credit score, you can find it on annualcreditreport.com by giving your details.

You can check the tips which we will discuss to improve your credit score. You can also ask your lender or a financial professional for advice to improve the credit score. They can answer all your questions and concerns throughout the process.

DETERMINE WHAT YOU CAN AFFORD

You should check at your monthly budget and take decision according to that budget. Your lender will qualify you for a dollar amount which you have applied for according to your debt-to-income ratio.  They will explain you everything and they will also give a loan estimate which will show your estimated monthly payment. You have to make sure that the monthly payment will be comfortable for you or not. Just keep in mind that this monthly payment doesn’t include water, electric, cable, etc and also you should always take that amount which you can afford.

If you get to qualify for $200,000, but the home which you want to buy is for $175,000 that will be great for you. You will have smaller monthly payments and can save extra money or you can spend it somewhere else. While setting a budget, you can save money by cutting the spendings which is excess. For example, you can eat less from outside, Maybe you eat five or six meals a week, you can cut down to one or two meals a week. You will save less, but that savings will add up and become large.

START SAVING MONEY

Down payment is the factor which keeps people away from first time home buyer USA. Hard money loans require a down payment of 25-35%. The down payment for conventional loans is 20% to avoid PMI. There are many more home loans which offer less down payments to qualify. FHA loans only require a 3.5% down payment. For example, If the loan amount is $250,000 then only have to put down $8,750, but in the conventional loan, you have to put down $50,000. A VA loan is for active and retired military members. They offer favorable loan terms and you don’t have to put down any money that means 0% down payment. You can ask your lender about the loan options you have for a suitable down payment. Keep it in your mind that you will also need funds to pay closing costs.

You should save money for down payment whether you want to opt 20% down payment or 3.5%. When you will become a homeowner, you will also require funds for any maintenance or emergencies. You should have savings account for home-related expenses.

DON’T FORGET ABOUT CLOSING COSTS

Many loans offer low down payments and no down payment, but every loan has the term to pay closing costs. The closing costs are 2 to 6% of the purchase price. Closing costs include things like third-party fees, title and recording fees, escrow, loan-related fees, prepaids, mortgage insurance. You can negotiate the closing costs with the seller.

FINAL THOUGHTS

If you are first time home buyer USA, you can contact us anytime to take a home loan. When you are interested in buying a house and flipping it, getting a hard money loan for investment property is a good option. We know that sometimes people have a harder time getting a home loan. That’s why we offer multiple different alternative financing options. You have to be careful and avoid making any costly mistakes. Our competitive rates, efficient services, and talented team can help ease the process of the home loan.

We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. 3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today and our specialists will be in touch promptly to answer your questions. We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.

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THE DIFFERENCE BETWEEN HARD MONEY LOANS VS PRIVATE MONEY LOANS: 3CALoan

When you are interested in investing in real estate, there are many things in which hard money and private money loans are good. Hard money vs private money loans is also good when you compare them to traditional loans like bank loans. If you have a bad credit score and you want a home loan to invest in real estate or to earn money from fix and flip project, you will be happy to know that hard money lenders and private money lenders don’t care much about the credit score. They are more concern about the capital you have. You have to put down 25-35% of the purchase price of the property in hard money vs private money loans.

HARD MONEY VS PRIVATE MONEY

These types of home loans tend to require payment in full within few years, so you should have some plan to earn profit from the project and pay back the full amount of the loan quickly. You have to pay a higher interest, but this shouldn’t be a deal breaker if you have a good plan to earn the profit on investment. Taking a hard money vs private money loans with bad credit will simple for you. These two types of loans are similar but it is very easy to understand how they are different. In this article, we will discuss how they are different and what you should know about them.

HARD MONEY LOANS

Hard money lenders in California are typically professionals. As they are professionals they have the proper licenses to fund the money to investors. They are easy to find because it’s their business to lend the money to the property investors like lending money to you. You can find hard money loan lenders through the professional directories and advertisements. They have to promote what they do. They also don’t need any negotiation skills to secure a loan.

Hard money lenders will determine itself that whether you are a good candidate to fund the loan or not because they are professionals. In most cases, hard money loan process is easier to manage, just like bank loans.

PRIVATE MONEY LOANS

You can choose private money lenders over hard money competitors and there are also advantages and disadvantages of choosing private money lenders. Private money lenders are difficult to find because they are private investors. These lenders don’t tent to advertise, so you can only find them through a professional intermediary of some sort.

If you will choose private money lender then you will gain almost every advantage of hard money loan and with all that you can also negotiate the terms of your investment deal with the lender.

FINAL THOUGHTS

By understanding the differences between hard money vs private money loans, you have the chance to select the option that’s right for you and your project. Though hard money loans and private money loans are very similar, as they are both loans are used for buying property. We know that sometimes people have a harder time getting a home loan. That’s why we offer multiple different alternative financing options. Don’t rush during the process and avoid the common mistakes with loans. Contact us and we’ll be happy to answer any questions! We offer multiple different alternative financing options. You have to be careful and avoid making any costly mistakes. Our competitive rates, efficient services, and talented team can help ease the process of the home loan. We help our customers every step of the way.

We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. 3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, without tax return, Private money loans for real estate, private hard money loans, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today! Our specialists will be in touch promptly to answer your questions. We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.

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