Check Your Credit First

Before You Buy A Home, Secure Your Credit Report

You may think that missing a credit card payment here or there will not affect you in the long term, but when it comes to buying a home you may be surprised about the important role your credit score will play. When mortgage lenders consider offering you a loan, your credit report will be one of the first variables at which they will look. As a result, when you start to think about buying a home your credit score should be one of the first things you consider.

How can you tell if you have credit that will impress possible lenders? You should check your credit score, and because of a law that was signed into place in 2003 you can secure a credit report for free from each of the major credit reporters. The three credit agencies from whom you can get your free report are Equifax, Experian, and TransUnion. Each will give you a slightly different credit score, and lenders will usually choose the median score.

A perfect credit score is 850, but only 10% of people have credit scores of 800 or higher. If you have a score of 700 or more, most lenders will consider you a good applicant and give you a loan with competitively low interest rates. In the high 600s, you will most likely be able to secure a low interest loan, but as you creep into the lower 600s you can expect to see higher interest rates. If your credit score is less than 600, you will only qualify for a subprime loan- which means it will have an interest rate that is a couple of points higher than most loans.

Mortgage professional Andraya Coulter can help guide you through the process of getting the right loan for you. As a home lending expert in Northern California, I look forward to working with you to get you into your dream home. Contact me today!

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