Where DO you want to live?
Your credit dictates where you will live... & more importantly, your monthly payment.
Whether You Rent or Buy...
Your Credit Runs the Show!..
- Your credit profile determines if you qualify to obtain a loan for a home to start with.
- The interest rate of your loan is determined by your credit profile. Which in turn determines the amount of your monthly payment, and total out of pocket cost.
- Most landlords will also run your credit report to evaluate your payment record when choosing their new renters..
- The better your credit rating - the lower your interest rate - allowing you to buy a higher value house for the same payment as a buyer with a lower credit rating. Check out this comparison!
It is rather important to understand what items on our credit profile can put us in the position obtain the best rate and term possible, in turn keeping our payments down and keeping as much money in our own pockets as possible.
Recently the changes that are taking place in the country leave us with even more strict guidelines in order to qualify.
With the state of the economy being what it is, and the fact that B/C paper lending is a luxury of the past - now more than ever we all need to understand how to have a strong credit profile.
B/C lending was put into action to assist families with less than perfect credit. The requirements were very flexible. The rates were higher, the down payments needed were lower (if required at all) therefore the monthly payments were much higher than individuals with established credit. For the home owners that continues to afford their payments it was a blessing for them to be able to purchase a home.
Many individuals were unfortunately not able to meet their mortgage obligations, and as a result a record number of foreclosure's surfaced through out the country. In turn the banks were not being repaid for the money they borrowed. As a result B/C lending programs were taken off the table, and no longer offered. Many banks specializing in these 'B/C credit' loans closed their doors. These actions are what have led us to the very controversial BAIL OUT PROGRAM.
AN OUTSTANDING TIME TO BUY A HOME . .
The change in the economy that has taken place over the last few years has created a situation where our credit rating must be strong in order to obtain a home loan. We need to understand, now more than ever what our credit rating is, how to raise our credit score by building a solid credit file, and how to continue to make decisions that are good for us long term.
With the foreclosures flooding the market place, and a large number of Americans unable to purchase homes the supply is much great than the current demand. This allows individuals with good credit to buy homes at very low prices compared to what they were just a few years ago, and set themselves up in a great situation.