Why is it important to check your credit score when buying a home? When you approach a bank or mortgage lender for a loan, your credit history will be used to determine if you will be a responsible borrower. Lenders learn about your credit history by looking at your credit report. Your credit scores will then determine the rate and conditions you receive on a loan.
If your score is high, meaning your credit history shows that you've paid your credit bills on time, haven't maxed out your credit cards, then lenders think you will be able to pay your loan. They will see you as a low risk and offer you a low rate on your loan with good conditions.
If your score is lower, lenders will think you're a riskier investment and charge you by loaning money at a higher interest rate, often with hidden charges, in order to take on the perceived risk.
The maximum credit score is 850, however any score in the 700's is excellent and will get you a loan with the lowest rate. A score in the high 600's is still considered good, lower than that canbe a problem. So you can see the importance of keeping a good score.
The good news is that your score is not fixed in stone. If you have low credit scores, there are ways to improve your credit health and a reputable lender can give you advice on making those improvements.
You can check your credit score using Credit.com's free Credit Report Card. You can get yor scores from three agencies: Equifax, Experian, and TransUnion. This free tool will show payment history, debt and other factors affecting your score and you'll get recommendations for steps you can consider to address problems. Checking your own credit does not affect your credit score in any way.
Author:Margaret Laurano Phone: 201-859-6323 Dated: January 18th 2016 Views: 550 About Margaret: Margaret has over 30 years of experience with a background in commercial real estate which gives her...
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Gordon made my experience as a first-time home buyer as stress free as it can be. He came highly recommended, and didn't disappoint. I had dealt with a couple of agents before I met Gordon, and both were a nightmare. Moving from Hoboken, Gordon introduced me and my fiancé to the Morris County area. He spent an exceptional amount of time pointing out the local hot spots, pros/cons of neighborhoods, and overall made me feel comfortable narrowing the search. His approach to finding the right home was refreshing, if not tedious, taking us to various listings to see a single detail we may like so he could narrow the search. He often would say, "I know this isn't the right place for you, but what do you think about the yard/kitchen/bedrooms/etc?". When the listing for the home we eventually bought came up, he immediately knew we'd like it.
Gordon walked us through the inspection, negotiation, and closing process. In the rare case when he wasn't able to answer the phone, Gordon's responsiveness was excellent as well. I love the home I'm in, but if I ever need a change, I hope to have Gordon as my agent in the future."