Oct
31
Purchasing a Home – Your Credit Worthiness
October 31, 2009 | Leave a Comment
No matter if you are purchasing your first home, or if you are an active investor and are purchasing your twenty-fifth property, your credit score will play a critical role in obtaining a mortgage loan. By wisely managing your credit and understanding how your credit score affects your borrowing ability, you will be able to make the most out of your investment.
Before you ever apply for a home loan, you should check your credit report and verify with your mortgage lender that you have the proper credit score to be able to obtain the loan that you want. Your credit score is a number that is given to you by the major credit reporting agencies based on how good they have determined that your credit is. The higher your credit score, the better your credit is. The better your credit is, the more likely it will be that you will qualify for a mortgage loan.
Experian, Equifax, and Transunion are the three major credit reporting organizations from which you can obtain your credit score and credit report.
By maintaining a higher credit score, you will be able to get a more favorable interest rate on your mortgage loan. Many lenders will be more willing to work with you if you have an excellent credit rating. They will also be able to lend you a higher amount of money if your credit score is favorable.
In order to maintain a high credit score you must be responsible when it comes to paying your bills in a timely manner. You should avoid having late payments and large amounts of outstanding debt, particularly with credit cards and consumer loans.
By understanding how to maintain your credit and how your credit score will affect the type of mortgage loan that you will be approved for, you will be one step closer to being able to purchase the home of your dreams.
Of course your credit score is but one of many factors that will determine whether or not you will be approved for a mortgage loan. Lenders will also consider your financial stability, your income, and your employment status.
Weichert Realtors, Brockwell & Portwood, located in Colonial Heights, Virginia is dedicated to serving you and helping you achieve Your American Dream of owning your own home. We look forward to providing you with information, tools and expertise to help you buy or sell your home. We feature Fort Lee, VA real estateand Petersburg, VA homes for sale.
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