Your credit score is very important for home buyers.
Maximizing your credit score is an important first step in preparation to buying a home.
In the current market, lenders are getting tougher on their qualification requirements all the time. You should make sure you are giving the best view of your credit-worthiness possible when applying for a loan.
Your credit score will also affect what interest rate you get if you qualify for a loan.
The interest rate has a significant impact on your future financial health. A 1% difference in interest rate equates to a 25% difference in total cost over the term of a 30 year mortgage.
That means that on a loan for $100,000 you will pay $25,000 more if over the term of the loan than you would if your interest rate was 1% lower.
Your credit score also affects you in ways many people don’t realize.
- Many insurance companies base part of your auto insurance rate on your credit score.
- Interest rates on credit cards can vary drastically based on your credit score
- Employers may check your credit report when applying for a job.
Before you start looking at houses… before you start getting quotes on loans… before you start creating a financial plan, you should start by improving your credit score as much as possible. For more resources to help improve your credit score enter your name and email address below.
