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Dreams to Keys Realty Bingo Card - Homeownership Edition




Step 1 - Review Credit


Objectives

  • Acknowledge how to access your credit reports and credit scores

  • Identify issues on your credit reports that are incorrect or negatively impact your credit

  • Prepare to discuss your credit concerns with a mortgage lender


Review Your Credit Reports

  • Access your free annual credit reports from all 3 credit bureaus from annualcreditreport.com

  • Save or print each credit report and look for negative marks or inaccuracies

  • Make a list of each to prepare to discuss these with a mortgage lender


Review Your Credit Scores

  • Several sites or apps offer credit scores with varying levels of accuracy (i.e., Credit Karma)

  • Experian offers a free option to access your credit score with them as well as a Premium option for all three credit scores (currently 7-day free trial followed by $24.99 monthly)

  • Write down your credit scores at the top of each list you create of credit report issues for that credit report


Credit Improvement Options

  • If your lowest credit score is below 680 and you are making on time rental payments, consider contacting Rent Reporters (link in bio)

  • Before making any disputes, discuss the concerns with your credit report with the mortgage lender (Step 4 of this process)

  • If credit report issues need to be addressed after discussion with the mortgage lender, consider utilizing the DIY Credit Repair Kit (link in bio)


Next Steps

  • 2025 Unrepresented Potential Buyers or Sellers for Gwinnett and Dekalb Counties of Georgia: Schedule a free consultation ($15 no-show fee) at www.dtkrealty.com/book-me

  • Buyers or Sellers Looking for a Referral: Text REFERRAL to (770) 758 – 5641 and we will call you to start the referral process

  • Everyone: Subscribe/Follow, Like, Comment, and Share our Content from Our Social Media Platforms


Let's Talk Budget





Whenever a person thinks of buying a home, there is a thought of how much money should be saved for the home purchase. With our clients, we prepare them for this journey by providing steps to become best prepared to discuss their financial position with a lender. Nevertheless, here are some tips that everyone can use to guide them in saving toward homeownership.


  1. Credit Check: Obtain a credit report from www.annualcreditreport.com and score from myfico.com. Budget: Free or up to $50 (subject to change).

  2. Avoid New Debt: Do Not Open New Credit Lines Before Home Purchase. Budget: Free!

  3. Pay Down Debt: Reduce existing debts if necessary to improve credit profile (discuss with lender first). Example: Allocate $500 - $2,000 for debt repayment.

  4. Credit Report Correction: Correct inaccuracies on your credit report (discuss with lender first) using DIY Credit Repair Kit. DO NOT CREATE DISPUTES PRIOR TO HOME PURCHASE. Budget: Free to $39.99 (subject to change).

  5. Calculate Affordability: Use mortgage calculators to understand what you can afford (i.e., Bankrate's Mortgage Calculator). Budget: Priceless!

  6. Contact a Financial Advisor: Seek professional financial advisor toward your goals. Budget: Free to $300 per hour (subject to change depending on the type of advisor and any established relationship with the company).

  7. Legal Assistance: Consult with a real estate attorney regarding your homeownership goals (i.e., purchasing in the name of a trust, investing, etc.). Budget: $200 - $500 per hours (depends on the attorney's fees).

  8. Create a Budget: Track income and expenses to identify savings opportunities. Budget: Priceless!

  9. Automate Savings: Set up automatic transfers to a high yield savings account that is not used for any expenses. Budget: Priceless!

  10. Cut Unnecessary Expenses: Reduce spending outside of budget. Budget: Priceless!

  11. Save Windfalls: Save bonuses, tax refunds, and other additional funds outside of standard income. Budget: Priceless!

  12. Consider Additional Income: Find ways to boost your income within your line of work if possible (i.e., demonstrate qualification for a raise, etc.). Budget: Priceless!

  13. Down Payment: Apply for down payment assistance or save up to 20% of the home price to avoid private mortgage insurance (PMI). Example: For a $300,000 home, save $60,000.

  14. Closing Costs: Save 2-5% of the home price for closing costs. Example: For a $300,000 home, save $6,000-$15,000.

  15. Emergency Fund: Maintain 3-6 months of living expenses. Example: If monthly expenses are $3,000, save $9,000-$18,000.

  16. Moving Expenses: Save for moving costs (professional movers, truck rental, etc.). Budget: $1,000-$3,000.

  17. Home Inspection: Save for a home inspection. Budget: $300-$500 (varies based on inspector and home's size).

  18. Appraisal Fee: Save for an appraisal. Example: Budget $300-$500.

  19. Earnest Money Deposit: Save 1-3% of the home price. Example: For a $300,000 home, save $3,000-$9,000.

  20. Property Taxes: Save for initial property taxes. Budget: $1,000-$3,000 (varies by home's value and location).

  21. Homeowner's Insurance: Save for the first year’s premium. Budget: $1,000-$2,000.

  22. Private Mortgage Insurance (PMI): Save for PMI if down payment is less than 20%. Budget: 0.5-1% of loan amount annually (clarify with lender).

  23. Hire a Real Estate Agent: Sign a Buyer Brokerage Agreement (BBA) with The Essential Millennial Realtor to receive exceptional services toward your home purchase. Budget: Commission Rate per BBA.

  24. Research Home Prices: Meet with The Essential Millennial Realtor to discuss market trends in your price range: Budget: Priceless!

  25. Understand Market Trends: Follow the housing market trends to be better prepared to make an offer. Budget: Priceless!

  26. Attend Showings and Open Houses: See each property before you make an offer. Budget: Priceless!

  27. Understand Mortgage Trends: Complete onboarding review with The Essential Millennial Realtor to understand the home finance process as well as a separate call with the lender's representative to understand specific interest rates, terms, and conditions. Budget: Priceless!

  28. Re-evaluate Your Financing Options: While in the due diligence period, make sure your financing aligns with your budget for the subject property (ask your lender if rates have decreased, etc.).

  29. Research Mortgage Options: Compare loan fee estimates for each mortgage option before deciding which one is best for you. Budget: Priceless!

  30. Get Pre-Approved: Obtain a mortgage pre-approval. Budget: Free to $50 (subject to change and varies by lender).


If you are looking to buy a home, we home you find the information above helpful. We also hope that you will allow Dreams to Keys Realty LLC and The Essential Millennial Realtor to assist you in your homebuying journey.

 
 
 

How to Maintain or Improve Your Credit






Are you looking to improve or maintain an excellent credit score? Your credit can influence your ability to access funding for new property including the purchase of your dream home. We at Dreams to Keys Realty have 31 tips you can use right now to maximum your credit profile. Check out the tips below.


  1. Check your credit reports: Obtain free annual credit reports from each of the three major credit bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com.

  2. Review your credit reports: Look for errors, inaccuracies, or fraudulent activity on your credit reports. Utilize the DIY Credit Repair Kit to address credit report concerns (See the Shop tab above).

  3. Understand your credit score: Know the factors affecting your credit score, such as payment history, credit utilization, length of credit history, types of credit, and new credit.

  4. Set up payment reminders: Avoid late payments by setting up automatic reminders or recurring payments.

  5. Pay bills on time: Timely payments have a significant impact on your credit score.

  6. Create a budget: Manage your finances effectively by creating a budget that prioritizes debt repayment and savings.

  7. Prioritize high-interest debt: Focus on paying off high-interest debts first to reduce overall interest payments.

  8. Negotiate with creditors: Contact your creditors to negotiate lower interest rates or work out a repayment plan if you're struggling to make payments.

  9. Settle outstanding debts: Negotiate settlements for outstanding debts, if possible, and get written confirmation of the agreement.

  10. Avoid new credit applications: Limit new credit applications, as each application can result in a hard inquiry, potentially affecting your credit score.

  11. Diversify your credit: Having a mix of credit types (credit cards, installment loans) can positively impact your credit score.

  12. Keep credit card balances low: Aim to keep credit card balances below 30% of your credit limit to improve your credit utilization ratio.

  13. Become an authorized user: If possible, become an authorized user on someone else's credit card account with a positive payment history.

  14. Use a secured credit card: If you have trouble obtaining a regular credit card, consider a secured credit card to build or rebuild credit.

  15. Don't close old accounts: Closing old accounts can shorten your credit history. Keep old accounts open, even if you're not actively using them.

  16. Monitor your credit regularly: Stay vigilant by regularly checking your credit reports and scores.

  17. Seek professional advice: Consult with a credit counselor to get personalized advice on managing your credit.

  18. Educate yourself: Understand the laws and regulations related to credit reporting, such as the Fair Credit Reporting Act (FCRA).

  19. Pay attention to public records: Address any public records, such as bankruptcies or liens, on your credit report.

  20. Pay off collections: If possible, negotiate with creditors to pay off collections in exchange for a removal from your credit report.

  21. Use windfalls wisely: If you receive unexpected money, consider using it to pay down debt or build an emergency fund.

  22. Avoid credit repair scams: Be wary of companies promising quick fixes for a fee. Legitimate credit repair takes time and effort.

  23. Apply for credit strategically: Only apply for credit when necessary and when you can afford it. Avoid new applications when buying a home.

  24. Keep your employment stable: Lenders may consider your employment history when assessing your creditworthiness.

  25. Use caution with co-signing: Be cautious about co-signing loans, as it can impact your credit if the other party defaults.

  26. Know your rights: Understand your rights as a consumer, especially when dealing with debt collectors.

  27. Reduce unnecessary expenses: Cut back on non-essential expenses to free up money for debt repayment.

  28. Build an emergency fund: Having an emergency fund can help you avoid relying on credit in times of financial strain.

  29. Attend financial education workshops: Learn more about personal finance and credit management through workshops or online resources.

  30. Seek debt consolidation: Consolidating high-interest debts into a lower-interest loan can make repayment more manageable.

  31. Be patient: Improving your credit score is a gradual process. Stay consistent with positive financial habits, and over time, you'll see positive changes.


We hope that you found these tips helpful on your journey of improving or maintaining excellent credit. You can use these tips and our DIY Credit Repair Kit eBook to address several credit related concerns. Get you copy today by going to the Shop tab above.



Make sure to follow us on social media for various daily tips about many topics related to homeownership. See the links below. We hope to see you here next month for our next blog.

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