Are you a first time home buyer? With so many choices to make and so much at stake, it’s essential that you prepare. For advice, check out the First Time Home Buyer Guide from realtor.com® to learn the 10 steps to purchasing your first home without a hitch.

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Step 1: How to Improve Your Credit Score

Pull your credit report

Experian, Equifax, and TransUnion are the three major U.S. credit bureaus and each releases its own credit scores and reports (a more detailed history that’s used to determine your score).  Although they do pull from different sources their scores should be about the same.  For example, Experian considers on-time rent payments while TransUnion has detailed information about previous employers.

To access these scores and reports, financial planner Bob Forrest of Mutual of Omaha recommends using AnnualCreditReport.com, where you can get a free copy of your report every 12 months from each credit-reporting company. It doesn’t include your credit score, though—you’ll have to go to each company for that, and pay a small fee. Fee’s tend to range in the $25-$40 range.

Or you can check with your credit card company: Some, Capital One and Discover offer free scores and reports.  Once you’ve got your report, make sure to review it carefully, particularly the “adverse accounts” section that details late payments and other slip-ups.

Assess where you stand

Remember the better your credit history, the higher your score will likely be which means the better your ability to get a home loan. The Federal Housing Administration requires a minimum credit score of 580 to permit a 3.5% down payment, and most lenders will require at least a 620, if not higher, credit score. So what can you do if your credit report is in less than tip-top shape? Don’t worry, there are ways to clean it up.

How to improve your credit score with error disputes

A Federal Trade Commission study in 2013 found that 5% of credit reports contain errors that can negatively impact your score. So if you see anything, you can start by sending a dispute letter to the bureau, providing as much documentation as possible, per FTC guidelines. You’ll also need to contact the organization that provided the bad information, such as a bank or medical provider, and ask them to update the corrected data with the bureau. This may take a while, and you may need documentation to make your case. But once the bad info is removed, you should see your score bump up.

Eliminate one-time mistakes

Ok, so you’ve made a late payment or two—who hasn’t? Call the company that registered the late payment and ask that it be removed from your record. “If you had an oopsy and missed just a payment or two, most companies will indeed tell their reporting division to remove this from your credit report,” says Forrest. Granted, this won’t work if you have a history of late payments, but for accidents and small errors, it’s an easy way to improve your credit score.

Eliminate credit card balances

“A good way to improve your credit score is to eliminate nuisance balances,” says John Ulzheimer, a nationally recognized credit expert formerly of FICO and Equifax. Those are the small balances you have on a number of credit cards.

The reason this strategy can boost your score: One of the items your score considers is just how many of your cards have balances, Ulzheimer says. That’s why charging $50 on one card and $30 on another instead of using the same card (preferably one with a good interest rate) can hurt your credit score.

The solution to improve your credit score is to gather up all those credit cards with small balances and pay them off, Ulzheimer says. Then select one or two go-to cards that you can use for everything.

“That way, you’re not polluting your credit report with a lot of balances,” he says.

Increase your limits

One no-brainer way to increase your credit score is to simply pay off your debt. Not an option right now?  Here’s a cool loophole: Ask your credit card companies to increase your credit limit instead. This improves your debt-to-credit ratio, which compares how much you owe to how much you can borrow.

“Having $1,000 of credit card debt is bad if you have a limit of $1,500. It isn’t nearly as bad if your limit is $5,000,” Forrest says. The simple math: Although you owe the same amount, you’re using a much smaller percentage of your available credit, which shines well on your borrowing practices.

Leave old debt on your report

Some people erroneously believe that old debt on their credit report is bad.  The minute they get their home or car paid off, they’re on the phone trying to get it removed from their credit report. Negative items are bad for your credit score, and most of them will disappear from your report after seven years. However, “arguing to get old accounts off your credit report just because they’re paid is a bad idea,” Ulzheimer says.  Good debt — debt that you’ve handled well and paid as agreed — is good for your credit. The longer your history of good debt is, the better it is for your score.  One of the ways to improve your credit score: Leave old debt and good accounts on as long as possible. This is also a good reason not to close old accounts where you’ve had a solid repayment record.Trying to get rid of old good debt “is like making straight A’s in high school and trying to expunge the record 20 years later,” Ulzheimer says. “You never want that stuff to come off your history.”

Pay on time

If you’re often late with payments, now’s the time to change that. You do have the power to improve your credit score yourself. Commit to always paying your bills on time and consider signing up for automatic payments so it’s guaranteed to get done.  With all of life’s distractions having one less thing to worry about that is already setup, processed and ready to go is an excellent way to go.

Give yourself time

Unfortunately, negative items (such as those habitually late or nonexistent payments) can stay on your report for up to seven years. The good news? Changing your habits makes a big difference in the “payment history” segment of your report, which accounts for 35% of your score. That’s why it’s essential to start early so that you’re sitting pretty once you’re shopping for homes and find one that meets your needs.

Once you’ve set your credit on a better path, it’s time to tackle the next major hurdle: saving for a down payment.

**Ryan Wheeler is an expert real estate agent and military veteran serving buyers and sellers of homes in the Shreveport Bossier City area.  Connect With Me

Are you a military veteran who needs to buy a house in Shreveport Bossier City?

Closing costs are those costs and fees associate with buying a home.  However, if you are active military or a veteran you may be exempt from some costs or may be able to negotiate others if you use your VA loan benefit.

Most military members are not independently wealthy and have not saved for years and years to buy a home.  Many are cash-strapped and are forced to rent, stay on base (which is also renting) or buy a home.  Not because they want to so much as because the service has forced them to make that decision.

Given a forced decision being able to use one’s VA benefit to get a mortgage to buy your own home can be the best answer to prayer.  Eligible military borrowers who use this option can buy a new home with no down payment and no Private Mortgage Insurance payment.  However, the VA does charge a funding fee of up to 3.3% which gets rolled into the loan itself.

But borrowers of any type will still face the dreaded obstacle which is closing costs.  Like death and taxes there’s really no way out of them.  Someone will need to pay (either the buyer, seller or mixture of both).  More on that in a minute …

Closing costs are those costs outside of the mortgage that just for the business of buying or selling a house and in the Shreveport Bossier City area, can equate to about 2.5% of a $225,000 loan.  These costs include lender’s fees, taxes, insurance, and other items needed to transfer the property to the new owner.  Payment of such is required at the time when you sign the papers at the Title company.   The good news is that as a military member using their VA loan benefit you are exempt from some closing costs and have ways to manage some of the others.

How are VA closing costs different?

**Ryan Wheeler is an expert RE/MAX real estate agent and military veteran serving buyers and sellers of homes in the Shreveport Bossier City area.  Connect With Me

Many home sellers believe bad advice or listen to those whose home selling experience is merely once every 10+ years.  Here are some good tips for those wanting to sell their Shreveport Bossier home for top dollar with an expert agent!

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True or false: All real estate advice is good advice? (Hint: it just depends.)

Everyone you know likely has advice about the real estate market, but not all of that unsolicited information is true or even factual.  Remember, everyone has had both bad and good experiences yet the bad ones tend be the most remembered (and spread around).  So when it comes time to list your home, you’ll need to separate fact from fiction.

Below we’ve identified some of the top real estate myths out there — and debunked them so you can hop on the fast track to selling your property.

Myth #1: I need to redo my kitchen and bathroom before selling

Truth: While kitchens and bathrooms can increase the value of a home, you won’t get a large return on investment if you do a major renovation just before selling.

Minor renovations, however, may help you sell your home for a higher price.  Replacing the Formica countertops with quartz or granite is a good idea.  Or perhaps you have older black or white appliances.  It would be a good idea to give a more freshened and clean look with stainless appliances.  This may be just the kind of bait you need to reel in that new buyer. Check out comparable listings in your neighborhood, and see what work you need to do to compete in your local market.  Remember, there are many other choices out there for a buyer.  Your job is to make them choose you!

Myth #2: My home’s exterior isn’t as important as the interior

Truth: Home buyers often make snap judgments based simply on a home’s exterior. Therefore, curb appeal is very important.

“A lot of buyers search online or drive by properties before they even enlist my services,” says Bic DeCaro, a real estate agent at Westgate Realty Group in Falls Church, VA. “If the yard is cluttered or the driveway is all broken up, there’s a chance they won’t ever enter the house — they’ll just keep driving.”

The good news is that it doesn’t cost a bundle to improve your home’s exterior. Start by cutting the grass, trimming the hedges and clearing away any clutter. Then, for less than $50, you could put up new house numbers, paint the front door, plant some flowers or install a new, more stylish porch light.

Myth #3: If my house is clean, I don’t need to stage it

Truth: Having a clean and tidy home is a good first step, but professional home stagers have raised the bar. Tossing dirty laundry in the closet and sweeping the front steps just aren’t enough anymore.

Stagers make homes appeal to a broad range of tastes. They can skillfully identify ways to highlight your home’s best features and compensate for its shortcomings. They might, for example, recommend removing blinds from a window with a great view or replacing a double bed with a twin to make a bedroom look bigger.

Of course, you don’t have to hire a professional stager. But if you don’t, be ready to use some of their tactics to get your home ready for sale — especially if staging is a trend where you live. An unstaged house will pale when compared to others on the market.

Myth #4: Granite and stainless steel appliances are old news

Truth: The majority of home shoppers still want granite counters and stainless steel appliances. Quartz, marble and concrete counters also have wide appeal.

“Most shoppers just want to steer away from anything that looks dated,” says Dru Bloomfield, a real estate agent with RE/MAX Platinum Living in Scottsdale, AZ. “When you a design a space, you need to decide if you’re doing it for yourself or for resale potential.”

She suggests that if you’re not planning to move anytime soon, decorate any way you like. But if you’re planning to put your home on the market within the next couple of years, stick to elements that have mass appeal.

“I recently sold a house where the kitchen had been remodeled 12 years ago, and everybody thought it had just been done because the owners had chosen timeless elements: dark maple cabinets, granite counters and stainless steel appliances.”

Myth #5: Home shoppers can ignore paint colors they don’t like

Truth: Moving is a lot of work, and while many home buyers realize they could take on the task of painting walls, they simply don’t want to.  There’s so much more to worry about with a move and spending the time and money to paint is not usually one of them.

That’s why one of the most important things you can do to update your home is to give it a fresh coat of neutral paint.  A few colors to consider that are very popular these days are light grays or light beige.  These neutral colors also help a property stand out in online photographs, which is where most potential buyers will get their first impression of your property.

Hiring a professional to paint the interior of a 2,000-square-foot house will cost about $3,000 to $6,000, depending on labor costs in your region. You could buy the paint and do the job yourself for $300 to $500. Either way, if a fresh coat of paint helps your home stand out in a crowded market, it’s probably a worthwhile investment.

**Ryan Wheeler is an expert RE/MAX real estate agent and military veteran serving buyers and sellers of homes in the Shreveport Bossier City area. #ryan_wheeler_expert_realtor Connect With Me