Your friend Credit.

Remember when you were younger, and you had an imaginary friend? Of course you do, but you’ve grown up since then, and no longer believe in imaginary friends……but you should. Every adult has an imaginary friend, whether they know it or not. He is a deciding factor in most of our major decisions; he decides what kind of car you’ll drive, how often you’ll go shopping, and most importantly, what kind of home you’ll live in. Still can’t figure out who he is? Well, he’s Credit, and he can be your best friend, but you have to take care of him.

Always watch out for your friend’s welfare. Check your credit report by contacting all 3 of the major credit bureaus (Experian, Transunion, and Equifax). Monitoring your credit will ensure that any discrepancies can be removed or corrected as soon as possible.

Just like a “real” friend, this one also gets upset when you cancel or miss your dates. Late and missed payments cannot be removed, but they can be counteracted. Even if you have to take money from a down payment fund, get those bills current!

Don’t cut off communications with your friend! While not having to worry about your friend might seem like a good idea, eradicating your credit can actually be detrimental to your score. Instead, pay down the balances, and then keep them current. Being able to show a long history of credit management can make all the difference when applying for a loan.

Lastly, make sure your friend isn’t running with a bad crowd! While opening a new card with a lower interest rate, and then transferring your balances may seem like a good idea, it’s not. Opening new accounts when trying to make a major purchase is one of the worst things you can do.

There are many factors that come into play when buying a home, and while the above steps don’t guarantee you’ll qualify for the home of your dreams, they do ensure that you’re on the right path. In the words of Ralph Waldo Emerson, “The only way to have a friend is to be one”. To see if it’s the right time for you to buy or sell your home, contact Ask Gina & Company at 703-574-3478 or email info@ask-gina.com.