Understanding Credit Scores and Mortgages
Southern Ocean County Real Estate
Your current level of debt, down payment and your income are not the only factors used to determine if you will qualify for a mortgage in the Southern Ocean County real estate market. Your credit score is of vital important to not only your ability to qualify but also to your interest rate.
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What is a Credit Report and Why Does It Matter?
A credit report is a “snap shot” of your ability to use credit. A credit report shows what type of credit you currently have (for example a credit card) and what you have used in the past. A credit report will include things like:
- How much credit you have outstanding
- How much debt you hold
- Your payment history
- Bankruptcy
- Evictions
It is important to check your credit before you apply for a mortgage as Credit Scores and the Southern Ocean County Real Estate Market have a great deal to do with one another. If you check and understand your credit early on, you can make repairs to your credit score and help advance the mortgage process. You can establish good credit by having steady source of income, paying your bills on time, keeping low debt limits and showing companies that you can use credit responsibly.
Credit Scores
A credit score, also known as a FICO score, is a number that the credit reporting agencies use to determine how well you can manage your finances and your credit. The higher the score, the better! A higher score will not only increase the chances of your getting approved for a loan, it may also lower the interest payment. Credit scores can range from 300-800 and higher! A “good” score is between 600 and 700.
Credit Scores, Mortgages and Buying in the Southern Ocean County Real Estate Market
While we are real estate agents, part of what we do is helping buyers understand their finances to be able to afford a house comfortably. If you have questions about qualifying for a mortgage or about your credit score, ask us! Chances are we can help!
The Beach Haven West Real Estate Group and Southern Ocean County Real Estate Specialists
Farrah Pileggi 201-952-4131| Kim Pileggi 732-887-4853 | Nathan Colmer 609-290-4293