How Buying A House is Affected by Credit ScoresPosted on September 20, 2010
Your credit report scores will determine your eligibility for a mortgage and the interest rate of your loan. A mortgage is a type of secured loan, worth the amount of what you are paying for your house, or slightly less depending on your down payment.
Types of Mortgages
There are many different types of mortgages, and deciding which type is right for you can be a daunting task. All mortgages must be paid back in monthly installments. Your income and credit history will determine your loan, interest rate and monthly payment. If you have poor credit scores you may not get a good interest rate or you may even get rejected for the loan entirely.
Hard Credit Checks
Mortgages include a hard credit check; too many of these can knock points off of your credit score. There are no credit tricks when applying for a mortgage. However it is necessary your credit report is accurate and gives you a foundation to build useful credit. Do not wait until the application process to discover your credit report potential. If you have mistakes on your credit report, contact us today. Our credit repair professionals understand home ownership is affected by your credit report.