First-Time Home Buyers Guide: Part 4 of 15
You Deserve Some Credit, If . . .
If you already know that you should make sure that your credit score is in good shape, you deserve some credit just for knowing that. But if you want to truly deserve (and get) some credit, you should make sure that your credit is in good shape before buying a house.
It doesn’t need to be perfect. But the better it is, the better your mortgage interest rate will be and the more mortgage products you’ll be able to choose from.
But here’s where you get bonus points… and this is something you truly deserve credit for if you know this...
From the minute you start looking to buy a house all the way to the day you close on your dream home, you should not make any large purchases or take on any new credit.
Too many would-be homeowners go out and buy or lease a new car, open up (and use) new credit cards, or make other large purchases before they close on a house, and they end up having their mortgage denied (or the approval amount lowered).
Knowing this separates the savvy homebuyer from the novice. So, if you already knew this, I’m impressed. If you didn’t, now you know, and you can go out there and impress the heck out of any bank or mortgage representative you speak with.
This is something that every mortgage advisor should be bringing up with a potential home buyer and every agent should be reminding buyers about. However, many forget to bring it up; they figure someone must have told them not to do this at some point. So it gets lost in the shuffle.
Even when a buyer is told, they often forget or ignore it. But you won’t. You know it. You won’t forget. You’re savvy…