Ready to buy a home? Can't stop daydreaming about that charming townhouse? Not so fast. There's a lot more that goes into buying your first home than scrolling sales listings and wishful thinking. Get the down-low from our housing market experts.
Do you know your credit score? When it comes to consumer credit, many people turn a blind eye. But taking a “what I don’t know, can’t hurt me” approach to personal finance may present serious issues, particularly for first-time homebuyers.
Your credit score is one of the most important parts of getting a mortgage, but it's also one of the easiest parts to control. Making small changes in how you handle your debts – some of which won't even cost you anything – can make a difference in your score, and get you qualified or get you a lower interest rate. Take steps to minimize your stress about getting a home loan.
So you have good credit and you've applied for a mortgage – congratulations! Did you know that lenders are now required to check borrowers' credit twice during the loan application process - once during pre-approval and once just prior to closing? This second check can really trip up your mortgage application because changes to your credit score could mean your application might be denied!
- Posted by Jeremy Bachmann
- credit score
Your credit report is really the record of your borrowing and debt repayment history. The report shows where you work and live, how you pay bills, whether you've ever been sued or arrested, or have filed for bankruptcy. The three major credit reporting agencies— Equifax, Experian, and TransUnion - collect all this information and sell it to financial institutions and employers.