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Credit Report and Score
When taking out any loan the lender you are working
with will take your past credit report and score
into consideration. Simply put this is the way
that they determine if you are a good credit risk
or not. The lower your credit score, the higher
your interest rate is going to be. In addition,
sometimes bad credit can even hold you back altogether
from getting a loan. This is something that you
hope to never have to deal with; but the fact
of the matter is that it can happen.
Lender Review
Before you can take out a loan on any piece of
real estate your credit report and score will
be reviewed by the lender you are working with.
From there they will determine if you are a good
credit risk, or if you could have done better
in the past. Depending on what the lender comes
up with, you will then be given a rate based on
your credit worthiness. Generally speaking, the
best credit risks will be able to get the best
loans available. As your credit score starts to
slide downwards, your rate will increase. This
is why it is very important to keep a good credit
score. This way when you go to buy real estate
you will be able to get the best rate; and the
best rate can mean big savings over the course
of a loan.
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Check your own Credit Report
One of the best things you can do before you
even try to find a house is get your hands on
your credit report. This can be done in a variety
of different ways. In fact there are several online
services that will give you your credit report
and score for a small fee. This is a good idea
so that you know what you are up against. In addition,
if you have any bad debts on your credit report
you may want to get them taken care of before
you start to apply for loans.
When reviewing your credit report check for mistakes.
If you find something that is not right you will
want to dispute it immediately. Remember, each
bad mark against you can hurt the rate that you
get when you take out a loan.
Getting into the real estate industry goes hand
in hand with your credit rating. If you want to
become a real estate investor, or buy a couple
of properties, having a top notch credit score
is very important. Even if you are only buying
one home, a good credit score can get you a low
rate and save you thousands of dollars.
Order Your Credit Report:
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Free Credit Report and Score!
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Fico Scores/Reports
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Equifax Credit Watch Gold 3-in-1
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TrueCredit 3-Bureau Credit Monitoring
> All
3 Bureau Credit Reports (Credit.com)
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