It seems kind of silly to have to ask the question, "is that a bedroom?" when you see what obviously looks like one. Our friend, you might just be surprised that what you see might NOT be a bedroom
What Happen To Your Credit Score When You Buy A Home
You've become obsessed with your credit score, guarding it carefully, and keeping a close eye on it to have everything in order when you apply for a home loan. That score will will not only affect your eligibility to getting that home loan, but it also can be used in determining the interest rate you'll be paying on that mortgage. Several things are going to happen with your well-guarded baby. Today, we look at a few of those.
You’ll likely start seeing minor dings in your credit score as soon as you start the process of applying for mortgages. When you apply for pre-approval, lenders will pull your credit score. When the lenders do perform a hard credit pull, it tells the credit scoring algorithm you’re looking for new credit, which will cause a small drop in your credit score. According to the website, credit.com, you can limit this effect while mortgage shopping by applying for pre-approval with several companies within a two-week period. When you limit your mortgage shopping to a short time period, you’ll still get a ding on your credit score, but it will be smaller.
As you would imagine, the large increase of a mortgage payment in overall debt will definitely cause a drop in your credit score. Luckily, installment debts like a mortgage cause less of a score decrease than high-balance revolving debts like credit cards.
If you’ve never had a mortgage before, adding one to your credit profile can ultimately be a good thing. Approximately 10% of your credit score is made up of your overall credit mix. In this case, variety, is a very good thing. Once your credit score gets past the temporary ding from the inquiries and taking out a new account, it may actually increase because you’ve expanded your credit mix. If you make your mortgage payments on time, you should see a fairly quick increase in your credit score. In fact, within a few months, barring any other issues, your credit score will likely be higher than it was before you first applied for a mortgage.
Interested in asking questions about your personal situation regarding your credit score? Call us! We have some great trusted resources we can refer you to, to get the answers and peace of mind you need. We're in the office and ready for your call at (423) 433-6517, or just stop by The Shields Team office inside Keller Williams Realty at 1033 Hamilton Place in Johnson City. There's no time like the present!
Holding a BS in Environmental Science, and MA in Education, real estate was not Shields Team Buyer Specialist Rayne Price's first career choice. It was only after encouragement from his wife and a cl....
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You've become obsessed with your credit score, guarding it carefully, and keeping a close eye on it to have everything in order when you apply for a home loan. That score will will not only affect