The Importance of Good Credit When Trying to Get a Mortgage Loan

Importance of good credit buying new home Red Leaf neighbor hood great real estate

Whether you’re applying at a bank, credit company or independent mortgage company, you’ll have to deal with the prospect of going through a credit score check. That simply means the company will evaluate your credit score before considering you eligible for the amount you want to borrow, especially if you are looking to buy in neighborhoods like Red Leaf real estate where prices are on higher side.

Depending on how high your score is, you’ll be given the right amount for the home you want to buy. However, before applying for your mortgage, you might want to think about the full extent to which your credit score could impact the process.

Here’s how your credit score might affect your ability to get a new loan in a few different and very important ways:

  1. A lower credit score usually translates into a larger interest rate. That means you’ll have to give back a lot more than what you borrowed, and your monthly payment plan might be more difficult to deal with than you’d initially anticipated.
  2. A larger down payment might also be on the agenda. Although there are mortgages that imply paying a smaller amount upfront, they are usually applied only to borrowers with a better credit score.
  3. Other fees, charges and collateral will also be influenced by your credit score. While having a better score might mean you can put up a less expensive property as collateral, a lower credit score could actually take away that advantage.

The post The Importance of Good Credit When Trying to Get a Mortgage Loan appeared first on Frank Duran Homes.



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