Category: Blog

7 ways to improve your credit before you buy your first home in Houston

First, let us know why does credit matter when buying a home? We will help you understand what you need to do before buying your first home in Houston. The process of buying a home not only starts with searching for an ideal place, a good credit score is also important.

Houston Buy home

There are 3 different FICO scores you need to know in order to buy a new home. To calculate the FICO score, 5 components of your credit report is considered. Other factors that need to be observed is your income, how long you have worked at your current job and the kind of credit you want.

5 components of your credit report

  1. Never miss your payments, I repeat never because the first component which is considered is your payment history. The history is about 35% of your FICO score, thus, is the essential factor in a FICO score.
  2. The second most important feature FICO score looks for is the amount you owe. This is the 30% of your FICO score. Remember, having credit accounts and owing money does not certainly make you a high credit risk.
  3. Length of your credit history also matters in your FICO score. The longer the credit history the better is your FICO score. The length of the credit history is 15% of your score.
  4. Credit mix is the fourth factor which is considered. FICO considers a mix of credit cards, retail accounts, and loans you recently have. It is about 10% of your score.
  5. The new credit is the last factor which is observed that how much new credit you have applied for opening several accounts in a short period of time. Thus, can cause greater risk. This is the 10% of your FICO score.

With a good credit score, more loans can be approved and also help you to save money with a lower interest rate on your loan. So, these were the reasons why improving your credit is important.

Now, let’s see how you can choose a Credit Repair Companies of Houston, before buying a home in Houston.

  1. Nearly 25% of people have been declined for a mortgage as it contains errors on their credit reports. So, it is very important to first get your mistakes fixed. Keep a close eye on your credits so that you can fix your mistakes even before you apply for a mortgage.
  2. Another way to improve your credit is to make payments that are greater than your minimum payment. This would not just make the minimum payment look bad to potential lenders also you can save money on interest.
  3. This one is an easy way to build your credit score, keep the balance less than 50% of your limit on every card and account.
  4. Instead of moving your debt from card to card in low interest, pay off (debt) what you can.
  5. This is the biggest mistake generally homeowners make, they buy a car in 3 months before applying for home loans.
  6. To increase your credit score to 100 points, planning is important. Try to pay down your debt even before filling out the application.
  7. Last but not the least, stay up to date. Pay your bills on time so that you never miss any payment.

If you have any doubt regarding the same feel free to contact us here.

Increase in College Enrollment

Despite the rising costs of tuition in recent years, the percent of students enrolling in degree-granting institutions continues to increase.  The new “knowledge economy” is creating higher-paid jobs, but most require education beyond high school.  A higher salary may incentivize the 61 million individuals who are older than 25 with only high school diplomas to benefit by obtaining a postsecondary education.

Total postsecondary enrollment is expected to grow 15 percent between 2009 and 2019.  Although enrollment growth of nontraditional students has eclipsed that of traditional students, the imbalance is expected to shift.  Projected growth between 2009 and 2019 shows traditional student enrollment growing at 16 percent while enrollment for students older than 25 grows at 13 percent.

Growth in Online Learning

Proprietary and two-year institutions play an increasingly important role in addressing some of our country’s most pressing challenges – global workforce competition and an increased demand for a highly skilled labor force, to name a few.  The growth in enrolments at proprietary and two-year institutions has soared in recent years. This dramatic increase has produced its own unique set of challenges, including higher student loan default rates.

Distance learning is creating a new trend in the way college students attend classes and earn their degrees because of the flexibility, convenience, and growing acceptance of online courses.  Besides the advantages for students, institutions use distance learning to address State budget cuts and space shortages.  During 2006-2007, there were more than 11,200 college-level programs designed to be completed exclusively online.  Sixty-six percent of these programs offered degrees and 34 percent offered certificates.  more recent data shows that in 2009, nearly 30 percent of students took at least one online course, nearly three times the percentage in 2002.

Stay tuned to College Financial Aid Guide for more facts.

Role of Government in College Education

The trends already discussed and the projected increase of student loan borrowers and aid applications will increase FSA’s responsibilities and workload; however, the workforce is not expected to increase at the same pace (As shown above).  For example, by the end of 2012, the number of borrowers serviced by FSA is expected to increase 246 percent from the FY 2006 baseline.

The number of aid applications is expected to grow by approximately 80 percent.  During FY 2012, FSA’s budget and onboard staff are projected to increase by approximately 53 percent and 23 percent respectively.

The increase in FSA’s budget is the result of transitions to 100 percent Direct Loans.  Even though there are increased costs for this program each year, the Congressional Budget Office estimated the shift to direct lending would save $67 billion over 10 years.

Stay tuned to College Financial Aid Guide, for more important facts.