Would Selling My Home Increase Or Decrease My Credit Score?
Im looking tο bυу a nеw home bυt wουƖԁ Ɩіkе tο increase mу credit score.WουƖԁ selling mу existing home increase οr decrease mу score ?Anԁ іf ѕο bу whаt degree?
Pυrсhаѕеԁ thе home 10 years ago fοr $130,000 аnԁ remaining mortgage іѕ $85,000.Payments hаνе always bееn οn-time.
Do you know what your current score is?
It is a huge misconception that people with 800 scores have a better rate than people with high 6’s to mid 700’s. There is a cap on the lowest interest rate available.
If you are considering on selling your home, this shouldn’t have any major impact on your score either way. What you can do to help your scores is:
1. Goto myfico.com, and download the free pdf. It explains the FICO scoring system in detail and has tons of great information.
2. Goto Annualcreditreport.com, and pull your own credit. Chances are your going to have to pay for it cause the free report only provides the information, and not the score. Look at doing a tri-merge through experian, equifax and transunion. Then you’ll be able to see exactly what the potential lender will see.
3. Try paying down your credit cards to lower than 30% of the credit limit. This will give you a boost. Not by much though.
4. Don’t close any accounts that you have. Because this could potentially kill your score.
5. Make sure when you pull your reports, that there aren’t any discrepancies. If there are, dispute them with the credit bureaus immediately. If there is something reporting late, or if there is something that isn’t reporting at all. Remember this goes both ways.
Use homebycountrywide.com, under the tools tab. There are some free dispute templates already drafted. All you need to do is enter your information, and mail it away. This can take up to 90 days or longer to dispute any item on your report.
Also, consult with an accountant, on how the taxation of your sale will effect you. Don’t quote me on this, but if you sell your home, to purchase one more in value I don’t believe you are taxed on the gain. But this could be a “budget buster.”
Let me know how things work out for you.
Good luck
if you buy your new home when you sell this one, then it depends what you buy. will you pay cash for your next home or will your loan/mortgage be higher? If it’s higher, then no. If it’s lower, than yes. if you sell and rent for a year, then it will increase, as your outstanding debt is that much lower.
Great answer J….