Oct 8, 2013

Posted by in Uncategorized | Comments Off on Your Credit Score And How It Can Affect Mortgages In Chatham, IL

Your Credit Score And How It Can Affect Mortgages In Chatham, IL

Before you even start to consider a home in this market there are a few prerequisite tasks you must complete. For starters, the best thing you can do for yourself and any professional you are interested in talking to in the business is check your credit score. Before you know what amount of mortgage you can afford, and if you can get one at all, you need to know what the score is on your credit. Once you have your score into a healthy margin of over 700 then it is time to think about mortgages in Chatham, IL.

There are three main reporting companies have a say as to what your current credit score is. These three credit bureaus are averaged together in order to give you a score on how you handle your finances. Some companies may tell you that a student loan or a medical charge on your credit history do not count but that is not true. Anytime you apply for credit, owe someone money for any reason, or don’t pay for a job you asked to do it will show up on your credit report.

How this negatively affects you when it comes to buying a home is that the worse your credit is, the more interest you will be charged over the life of the loan. A lender will be more skeptical about wanting to lend you money if they have proof from one of the bureaus that you can’t pay on time. In really bad situations a public lending institution will not lend to a person with bad credit at all.

If your credit report is not quite up to a number that you would like it to be, that does not mean that you still can’t proceed with talking with the people at Diamond Residential Mortgage. A scenario is that you may apply, have an interest rate that is higher than you like but as you pay off your mortgage you may be able to refinance in a couple of years once you have redeemed your credit score. You will have paid more over the life of your loan up until that point but there are options for mortgages in Chatham, IL if you really want to buy a home with bad credit.


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