On the Market for a Home in 2012? Be Sure to Follow these Resolutions

The 2012 housing market isn’t one you should walk into blind if you are interested in home buying. There are lots of differences from previous housing markets, especially when it comes to preparing for your search. Ilyce Glink has a number of good tips to take to heart in her article “New Year’s Resolutions for Homebuyers in 2012,” on the Equifax Finance Blog.

Now more than ever the first step you need to take in the home buying process is to procure your credit report and find out your credit score. With lenders keeping a tighter grip on who can take advantage of these historically low rates, it is important to know where you stand. You can check what your borrowing rating will be by pulling your credit score from all three reporting bureaus (Equifax, TransUnion and Experian) and use the middle score. You can get your credit score from each agency for a small fee by going to AnnualCreditReport.com, while you are there, you can get a free annual copy of your credit report, which will list what is positively and negatively affecting your credit score.

If your borrowing rating score is less than the optimal 780 or higher, you probably want to put the brakes on your home search for now and focus on practicing good credit behavior. The best way to build your score is to pay your bills in full and on time each month, and to keep lines of credit both open and active. Many borrowers make the mistake of closing out credit card accounts entirely rather than having them open to show you are capable of keeping up with multiple responsibilities.

The full article has a number of additional tips about how to gear up for your house hunt in 2012, so be sure to check it out if you’re thinking of finding a new home this year. Be sure to check the Equifax Personal Finance Blog for quality information on real estate, credit, insurance, taxes, retirement, budgeting and more.