You are interested in purchasing a home, but your credit score is not high enough to secure a mortgage loan. We have put together a 12 part series of credit tips to assist with improving your scores.
We believe that home ownership is one of the easiest paths to generational wealth. Imagine not renting and not contributing to other people’s wealth at the expense of yours. Imagine paying a monthly mortgage where eventually the money paid can be used to purchase your own rental/investment property. Imagine leaving your property to a loved one that will now always have somewhere to live, can focus on college, or start a business without worrying about paying rent or a mortgage, and can take out an equity loan to help with those same efforts.
These are the things that home ownership can do for you and your family, and if you don’t have enough cash to purchase a house outright, you will need a loan. One of the most important components of securing a loan is to give the loan issuer the confidence that you will pay it back as agreed and this confidence is gained through your credit history. Banks and other mortgage lenders will review your credit profile in order to assess the risks involved with extending a loan to you. Simply put you will be judged by your credit score, therefore it is very important that you understand how it all works. Through this 12 part series of credit tips you will find that there’s multiple things you can do on your own to improve your score.
Let's get started. Credit is part of your financial power. It helps you to get the things you need now, like a loan for a car, a credit card, furniture, appliances, etc. and these loans are based on your promise to pay later. Working to improve your credit helps ensure you'll qualify for loans when you need them.
Having good credit essentially means that you are making regular payments on time on each of your accounts until your balance is paid in full. Alternatively, bad credit states you have had a hard time holding up your end of the bargain; you may not have paid the full minimum payments or made those payments on time. You will find it useful to know how you are managing your credit impacts your credit score.
The Hennigan Realty Group blogs are a collective of information, experience, and expertise of the Hennigan Realty team. We have kept the information shared within the blogs general to provide foundational information that each person can build from. We are aware that everyone's real estate experience is unique and there is not a one-size fits all when it comes to buying or selling property. If you would like to gather more in-depth and specific requirements for your wants and needs, reach out to us directly.