“Most people don’t put much thought into their credit scores until the time comes to apply for a loan. If you expect to need financing in the next few months and aren’t convinced your credit score is high enough to get you approved, you’ll need to act quickly to improve your chances. Thankfully, there are several things you can do to boost your credit score in record time.” (“4 tips to increase your credit score fast.” Maurie Backman. 8 May 2017. http://money.cnn.com/2017/05/08/pf/credit-score-tips/index.html?iid=Lead)
One way to increase your credit score? Ask for an increase in your credit limit. But read CNN’s article for more tips!
Even if you have the financial means to put in an all-cash offer, you may not want to do so.
All-cash offers can be more appealing to home-sellers, but you also need to take into consideration the other aspects of paying so much cash upfront.
Will you have enough liquidity left? At least a few thousand dollars left in your pocket is ideal. You may have repairs, upgrades you desire to make, and increased utility and maintenance costs for your new house — not to mention your typical costs and unexpected financial needs (such as medical bills or suddenly losing employment).
What if you easily qualify for a mortgage? Interest rates are still on the low-side, and by obtaining a mortgage to purchase a house, you would be able to keep a large chunk of your finances.
Paying all-cash means you miss out on a tax break. When you have a mortgage, you are able to receive a tax break on the interest paid to the mortgage lender.
Buying a home — it’s a big decision; one that you should prepare for in advance.
“One of the most important things a first-time homebuyer can do is prepare their budget for this big financial event.” (“How to Prepare Your Budget for Buying Your First Home”. http://finance.yahoo.com/news/prepare-budget-buying-first-home-123000854.html)
And there’s a few key ways that you can get your budget in order:
Higher wages and seasonal price declines affect California housing affordability.
• “Thirty-one percent of California households could afford to purchase the $511,360 median-priced home in the fourth quarter, unchanged from third-quarter 2016 and up from 30 percent in fourth-quarter 2015.” (“4th Qtr 2016 Housing Affordability”. CAR.org. 9 Feb 2017)
• “A minimum annual income of $100,800 was needed to make monthly payments of $2,520, including principal, interest, and taxes on a 30-year fixed-rate mortgage at a 3.91 percent interest rate.”