Selling Your House? What to Do First
In advance of selling your house, there is one not often thought of step to consider. It will make the process more financially worthwhile. This step is not exactly obvious. However, when you consider the larger financial picture, it is extremely wise.
This often-ignored step concerns your credit. You may not think your credit is important when selling your home. Rather, you feel certain it is only the home buyers’ credit that is relevant.
Selling Your House Is Just The Beginning
That is not quite the reality. Remember selling your home is only the first step. Step two is buying your next home. If your financial picture is good, it will likely become more so after the profits of selling your home. It’s a fact that a higher credit score will get you lower mortgage interest rates when purchasing your next home. Even a tiny percentage point gain can lead to a large difference in “cash out” in the long term.
You may be thinking what can I do to improve my credit. Apart from the well-known advice like paying credit cards in a timely fashion, another step might be to take out a personal loan. You should consider doing this even if you do not need a loan.
However, it is important to always ask your CPA or other financial advisor about any piece of financial advice. Still, as J.M. Simon and Brady Porche report, if you desire a high FICO score that will get you the best rates and highest limits you are “going to have to mix it up a bit.” You must construct a credit profile that shows you use different kinds of credit responsibly. Varieties of credit used is one of the five factors lenders look at. It influences around 10% of your FICO score.
Getting a personal loan or using some other previously unused type of credit can better your score. Remember to plan ahead, these types of credit can take some time to register.
Selling your house is a huge high point for any family. It must be planned and implemented well. Just give us a call. We can make sure it happens!