You’re Almost Ready for the Big Move, Does Your Credit Score Truly Matter Right Now?
Your credit always matters! The process of purchasing a home doesn’t start when you walk through the door of your first open house – it starts well before that. One of the first stops on the road to home ownership is figuring out your finances, and that includes understanding your credit.
When it comes to buying a home, good credit often opens the door to substantial savings. More people are cutting their spending and paying down their debt in response to the recession, increasing the number of consumers who have better credit scores! Considering that the new Qualified Mortgage Rules went into effect in January 2014, improving credit scores is good news! With lenders reviewing applications more closely, the better prepared you are financially the more likely you are to be approved for a loan and keep up with payments.
Whether your credit is in need of an overhaul or you’re looking to preserve your stellar score, now is the time to address your creditworthiness so you can position yourself to get the best mortgage at the best rate.
If your credit is in need of a little boost, you can always reach out to professionals for help. One tip in particular is to work with the bank that would be financing your mortgage loan. The first thing that most banks do is pull your initial credit report. Ask your bank for a copy of that report, which is free of charge to you. With it, you can then reach out to creditors and discuss closing open accounts, paying off debts, and removing charge offs and more from your report.
Other things that an improved credit score can help with prior to your move:
- Financing appliances in your new home (refrigerator, stove, washer/dryer)
- Better rates on homeowner’s insurance
- Saving on your auto insurance at your new address
- Purchasing the best electronics (get your new 60 inch flat screen)