LOCAL RECORDS OFFICE — Becoming a homeowner is an attractive idea, and offers several advantages over renting says, Local Records Office.
However, purchasing a house for the first time can be extremely
overwhelming, and first time homebuyers often get swept up in the ordeal
and make several common mistakes.
Mistakes #1 – Not Performing a Credit Check
Your credit score plays a big role in buying a home. Lenders look at your credit score to determine you “credit worthiness,” or how big of a risk you’ll be and how likely it is that you’ll pay down your debt. The higher your credit score is, the better a loan you’ll get; the lower your score is, the less likely it is that you’ll get a favorable loan, and the more likely it is that you’ll have to pay a higher interest rate says, Local Records Office. Many first time buyers do not check their credit scores, either because they don’t think they matter or because they don’t think there’s anything they can do about them. In reality, there are a number of things you can do to improve your credit score, like paying bills on time and paying down debt. Additionally, research has found that the majority of credit scores contain false information: according to a study conducted by consumer group PIRG, 79% of credit reports contain some wrong information, and 1 in 4 reports contain errors damaging enough to deny consumers a favorable loan. By checking your credit score you can identify these errors and have them removed before you apply for a loan. Watch videos here.
Mistakes #1 – Not Performing a Credit Check
Your credit score plays a big role in buying a home. Lenders look at your credit score to determine you “credit worthiness,” or how big of a risk you’ll be and how likely it is that you’ll pay down your debt. The higher your credit score is, the better a loan you’ll get; the lower your score is, the less likely it is that you’ll get a favorable loan, and the more likely it is that you’ll have to pay a higher interest rate says, Local Records Office. Many first time buyers do not check their credit scores, either because they don’t think they matter or because they don’t think there’s anything they can do about them. In reality, there are a number of things you can do to improve your credit score, like paying bills on time and paying down debt. Additionally, research has found that the majority of credit scores contain false information: according to a study conducted by consumer group PIRG, 79% of credit reports contain some wrong information, and 1 in 4 reports contain errors damaging enough to deny consumers a favorable loan. By checking your credit score you can identify these errors and have them removed before you apply for a loan. Watch videos here.
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