Improve Your Credit Score & Buy A Home
Everyone talks about having good credit score, but is it really that important? In short, yes, having a good credit score makes life in general a heck of a lot easier. When it comes to buying a new house, having a credit score that is in the higher range will make the entire process easier and cheaper. People with high credit score will have access to mortgages with the best possible rates which is very beneficial in the long run.
Looking for homes for sale in Orange County? Call Balboa Realty today: 949-386-8310
When financial lenders are evaluating you for a home mortgage, credit scores play an important factor in their offers. Your credit score determines the different options they present you and the higher your credit score is, the better the options they'll give you. Mortgages can be more expensive due to reasons like when your credit score dips below 680 or if you've had a bumpy financial past. Lenders don't want to see financial lawsuits, bankruptcy, payment defaults, repossession of assets, liens, or foreclosure.
How To Improve Your Credit
There are many ways to maintain and increase your credit score.
- When you are in the process of buying a new home, don't apply for other lines of credit. Focus on just the home mortgage and make this your priority.
- Pay off as much debt as possible so you lower your debt to income ratio. This shows banks that you're capable of paying off your debt and you won't default on payment which is also key.
- Offer a higher amount for a down payment so you are asking to borrow a smaller chunk of money
- Always keep an eye on your credit score to make sure everything is accurate. If you discover something that isn't right, dispute it so that it doesn't effect your credit score.
Have questions about buying a home in Orange County? Call Balboa Realty today: 949-386-8310
Published on Friday, November 24, 2017