In the Virgin Islands, consumers who are hoping to buy a home in the future create a better plan to achieve their goals. Financial advisors recommend repairing their credit and increasing their credit scores first. A local financial advisor can show consumers how to achieve these objectives in a short amount of time.
Evaluate All Credit Reports
Consumers start their journey to a new home by evaluating their credit reports. All three credit reports are reviewed for discrepancies and outdated listings. Any outdated information should be removed by contacting the credit bureau and submitting a dispute. Once the outdated data is removed, the credit score begins to improve.
Pay Off Smaller Debts First
A financial advisor recommends paying off smaller debts first before trying to take on larger balances. Some creditors will accept a settlement offer to help the consumer pay off the debt faster. The settlement offers equate to a discount of up to 50% and allow the consumer to pay a lump sum or installments.
Pay Extra on Larger Debts
When creating a plan for buying a home, consumers should add a little extra to their payments for their larger debts. It creates a surplus and prevents them from facing late charges in the future. The efforts are beneficial for consumers who have faced a job loss or a significant decrease in their wages. Submitting a little extra also helps them pay off the debt faster.
Obtain a Pre-Approval for a Mortgage
After the consumer has completed the initial steps, it is time to get a pre-approval from their preferred mortgage lender. The approval shows the consumer the largest mortgage loan value available to them. It isn’t recommended that they accept the highest value unless they can afford it. Setting up a budget for buying the house helps them avoid common mistakes.
In the Virgin Islands, buying a home is an exciting life event and helps consumers obtain an important asset. When starting the process, consumers should address credit concerns and improve their credit rating. Lenders review the credit scores and determining creditworthiness. Consumers who want to learn more about creating a plan to buy a home contact Kirk Chewning right now.