Does Your Credit Score Matter When Purchasing A Home

 True or False?

Your credit score doesn’t matter as long as you have a large down payment.

What do you think? Comment your answer below! 

Hint: Your credit score plays a bigger role in securing the best mortgage rates than you might think.  In fact, a credit score is going to be a very large siding factor in getting you approved for a mortgage. Lenders will often look at your debt income ratio to ensure that you would be able to afford the monthly mortgage payment. I highly recommend that everyone obtains a recent copy of their credit report, and make sure to obtain copies from the three reporting agencies, such as Experian, Trans Union, and Equifax. Make sure to look over the report for any inaccuracies and dispute. Anything that doesn’t belong. To make a big impact on your credit score, make sure you payall of your bills on time. Over the course of a few years, it will have a dramatic increase on your overall score. Having trouble with debt, begin by making payments each month, but become discipline to pay down the debt as quickly as possible. That may entail some sacrifice for some personal wants but overtime you will be in a much better position. When the smallest debt is paid off, take that amount and add it to the next smallest amount. This debt snowball effect will help reduce your overall debt ratio.

Another important tip is to use cash for all purchases. While using credit cards can help establish credit, people tend to overspend because they cannot keep track of their purchases as easily while using a credit card. In addition, the credit card companies will only require consumers to pay a small monthly payment. Meanwhile, the interest rate on the credit cards accrued daily and making the items purchased a lot more expensive. Using cash will keep the purchasing to what is absolutely necessary. It is equally as important to develop a monthly budget and stick to that budget at all costs. If you have any questions or would like a personalized budget please feel free to either email me at tom.reustle@cbrealty.com or call or text at 717-332–2515.