Only Those With Good Credit Need Apply
The housing market is full of sellers and potential buyers and it would seem
that in many markets that a home could sell quickly to the first available
buyer.
However, that is not the case as there is an underlying reason why some
buyers are rejected: their credit is not good. It almost seems that the market
is saying one thing but telling another: Only Those With Good Credit Need
Apply.
If you are looking for a home, do you measure up? If not, you could be in for
a rude awakening.
It is a fact: if your credit rating is good or excellent, then you stand a
chance of obtaining that home you put a bid on. In fact, you stand an even
better chance of getting that house if you walk into the home with a mortgage
pre-approval letter in hand.
There are several things that can work against you being approved for a
mortgage loan and they all center on risk which is determined by your credit
rating: the better your credit the lower your interest rate and the better
chance you will be approved for a loan in the first place.
Yes, before applying for a mortgage or placing a bid on a home there is
something that you must uncover: what is your credit score? By obtaining your
three credit reports and credit scores via AnnualCreditReport.com you can find
out exactly where you stand.
If your credit scores are good or excellent then go
ahead and apply for a mortgage. If not, you may need to spend some time fixing
your credit before applying.
To fix your credit you can:
Consolidate debt and pay down your existing balances.
Pay your obligations on time.
Correct any errors found in your credit reports.
Put a freeze on your credit: do not apply for credit while repairing your
current credit standing and do not use your current credit cards to run up
higher balances.
After you accomplish the above:
You can run your credit reports and scores again some six months later to see
if your credit scores have rebounded. If not, and you still want a home, then
apply for a mortgage knowing that you will receive a higher interest rate
mortgage.
So, that's it. You may be approved for a mortgage or you could be turned
down. Correct your current financial condition for a better chance of getting
the home of your desires.
that in many markets that a home could sell quickly to the first available
buyer.
However, that is not the case as there is an underlying reason why some
buyers are rejected: their credit is not good. It almost seems that the market
is saying one thing but telling another: Only Those With Good Credit Need
Apply.
If you are looking for a home, do you measure up? If not, you could be in for
a rude awakening.
It is a fact: if your credit rating is good or excellent, then you stand a
chance of obtaining that home you put a bid on. In fact, you stand an even
better chance of getting that house if you walk into the home with a mortgage
pre-approval letter in hand.
There are several things that can work against you being approved for a
mortgage loan and they all center on risk which is determined by your credit
rating: the better your credit the lower your interest rate and the better
chance you will be approved for a loan in the first place.
Yes, before applying for a mortgage or placing a bid on a home there is
something that you must uncover: what is your credit score? By obtaining your
three credit reports and credit scores via AnnualCreditReport.com you can find
out exactly where you stand.
If your credit scores are good or excellent then go
ahead and apply for a mortgage. If not, you may need to spend some time fixing
your credit before applying.
To fix your credit you can:
Consolidate debt and pay down your existing balances.
Pay your obligations on time.
Correct any errors found in your credit reports.
Put a freeze on your credit: do not apply for credit while repairing your
current credit standing and do not use your current credit cards to run up
higher balances.
After you accomplish the above:
You can run your credit reports and scores again some six months later to see
if your credit scores have rebounded. If not, and you still want a home, then
apply for a mortgage knowing that you will receive a higher interest rate
mortgage.
So, that's it. You may be approved for a mortgage or you could be turned
down. Correct your current financial condition for a better chance of getting
the home of your desires.