How Does Credit Effect Buyers In Grand Rapids
Anyways Matt let’s get going and the
first question is
“how does credit affect buying a home”?
Hey Doug thanks for having me on. Credit
effects buying a home in two ways. One
quite simply is if you qualify for the mortgage
program, you will have to have a certain credit score.
Lenders and banks both have a minimum
credit score requirement and if you
don’t meet that requirement you quite simply
cannot move forward.
It is a hard stop but
once you do qualify for a mortgage the big
thing will be the actual interest rate
is based on how high your credit score is, so
if your credit scores very high you’re
going to get the very best interest rate.
If your credit score is just 20 points
below lets say a seven forty credit score
your going experience a .25% higher interest
rate on your mortgage.
So it’s very
important to check your credit and make
sure that you can take advantage of whatever
is out there that is available to get in very high
credit score mortgage.
So ok tell me how can a buyer work on his credit
score or what can they do to improve their
Well this actually comes up every day my
job most of the time people that do have lower
credit scores are wanting to improve their credit it’s
quite simply just utilization of credit.
A lot of times they just are paying
everything off or are they just stop
borrowing money due to maybe a
circumstance that happened in the past.
35% of what you are making payments
on is what your credit score is based on
and that is the advice I give to
all the people that come to my
office every day and apply for a
mortgage is let’s establish some new
credit trade lines such as may be a
revolving credit card or or or you know
we have a ShareBuilder account which is
a CD that you make payments on but we
need to have credit to your credit
report to get a credit score and have
that moving in the right direction with
payments on time.
Ok is there anything else you want the
buyer know about credit and what they do?
Yes I touched on this in the first
question. It it is important
that you know what your score is and is important
before you go shopping for a home
or even meeting with a loan officer to shop for a home
that you actually have your credit report
pulled by your loan officer, have them look at it and give
you ideas on how to improve it.
Look it over and make sure there are no mistakes on it
and then let that person give you a plan that will show you on how to
improve your credit scores you should be
doing this ninety days before you want to purchase a home.
Ok that’s that’s good information to know
and that’s Matt Harris with Mortgage One
and you should contact him this number
is 616-575-9853 and his email address is
firstname.lastname@example.org. Mortgage One is spelled out.
This is just informational video that
will help you try to understand the
importance of credit in what you need to do
you get in shape he can buy a house with
less hassles much more smoother
transition. So this Doug Hansen with Five
Star Real Estate and my number is 616-485-8955.