Cheryl Fleming, GRI, ABR's Blog
Credit plays an important role in your ability to secure a home loan and to qualify for a low-interest mortgage. However, many first-time homebuyers aren’t aren’t sure about the exact relationship between credit scores and mortgages.
This doesn’t come as much of a surprise considering the many factors that go into your credit score and into your lender’s decision to approve you for a mortgage. So, in this article, we’re going to cover three commonly asked questions that homebuyers have about credit scores and how they’re used by mortgage lenders to determine your eligibility for a home loan.
Will my credit score go down if I check my credit report?
If you’re thinking of buying a home in the near future, one of the first things you’ll want to do is check your credit. However, if you’ve heard that some credit inquiries briefly lower your credit score you might be hesitant to find out.
This common misconception stems from the fact that taking out new lines of credit results in a temporary decrease in your credit score. The difference between checking your credit and a credit inquiry is simple: a credit check you can access for free online through a service like Credit Karma, whereas a credit inquiry is performed by a lender or creditor with whom you’ve applied for credit.
In short, checking your credit score online won’t affect your score. In fact, the major credit bureaus are required to allow you to check your credit for free once per year.
Can I get a loan with low credit?
Increasing your credit score is a lengthy process that requires careful financial management. Many people who have had difficulties paying off bills, loans, and credit cards will have to rebuild their credit. Or, if you’re young and don’t have a diverse history of credit payments, you’ll be starting from scratch to build your score.
If you’re hoping to get an FHA (first-time homeowner loan), the lowest your score can be is 580. However, that doesn’t mean you should always take a loan with a low credit score. When you don’t have a good credit history, lenders will seek other ways to guarantees their investment. This comes in the form of higher interest rates or PMI (private mortgage insurance) which you’ll have to pay on top of your monthly home insurance and mortgage payments.
Will applying for a home loan affect my credit?
Simply stated, yes. However, applying for a loan or get preapproved is considered a credit inquiry and won’t leave any lasting negative on your credit score. Making several inquiries within a short period of time, however, can significantly lower your score, so choose your inquiries wisely. And, be sure to monitor your credit score on a monthly basis so you have an idea of where you stand along the road to applying for a home loan.
Buying a new home is something to which a lot of people look forward. Although it involves a lot of planning, stress and negotiating, the sense of fulfillment that comes when you finally move in is always an extraordinary feeling. However, at the same time, buying a new home is more than just signing some papers and moving in. If you plan to stay in your new home for a long time, then you want to be sure about it.
- First of all, the location is essential. You want to be sure that the house you pick is in a neighborhood that you will be comfortable living in. If you would rather live in a quiet community with gated houses and the works, then it means you have to avoid great homes in super urban places because it might not work for you. Or if you are an outdoor person, living in an apartment block close to the center of the city may not be for you. So before you make any decision, you might want to check out other streets around you and see the kind of vibe you sense. Drive around the neighborhood at different times of the day to discover how it changes throughout the day.
- Check for any potential risks that could prove dangerous for you and your loved ones. Some homes are built in areas that are prone to floods, wildfires, or even earthquakes. You want to be informed and aware so that even if you decide to move, you would have taken the necessary precautions. Is the house prone to a termite infestation? Are there lots of snakes or bears around? These are questions you shouldn’t forget to ask.
- Finally, learn to trust your guts about any home that you go to see. Pay attention to your first impressions as they are often quite correct. And not just first impressions but lasting impressions also. I am an advocate of coming back to check up the house again to be certain that you still feel the same way when you see it again. Homes are like shoes sometimes, and they may not just be the right fit for you. Learn to trust your intuitions and inner feelings about a piece of property; they are often entirely accurate.
47 Ernest Ave., Worcester, MA 01604
47 Ernest Ave., Worcester, MA 01604
Here are five things you need to put in check before putting your house out for sale:
Curb appeal and Entrance
The saying "don't judge a book by its cover" does not apply to real estate. Both the front and back of the home should be eye-catching. Making sure to mow the lawn, plant flowers, ensure paint is fresh, and the door is free from cobwebs or dirt, check that screens aren't sagging or broken and that the porch is clean and free from debris.
Applying a new coat of paint will make your house look fresh, clean and updated. It's like a bit of skincare for your walls and will cover all the cracks, chips, and the occasional dent. Before you paint, cover any holes with putty and sand them smooth, and for more significant damage, spray texture to make it look less noticeable. Also, don't forget to look up; if your ceiling looks old, give it a fresh coat of paint as well.
Flooring gets the most wear of all the parts of your house. If your flooring is begging for some personal care, consider doing so before you put your house on the market. Carpets should be free from stains or damage; tile and hardwood should be clean and free from cracks. Make certain linoleum is clean and free from holes or gouges. Replacing the flooring in the entire house is not advisable unless necessary. Do replace flooring in high traffic areas. If you are in the market to put a new floor in, hardwood is the gold standard for what buyers want most of the time, and there are a variety of cost options for most budgets.
Buyers aren't just in the market for a roof over their head; they are looking for a roof that doesn't leak, sag, or need a ton of repairs. If your roof doesn't need a complete overhaul, make sure that there aren't any shingles that need replacing. While you are up there, it is also a great time to clean out those gutters and caulk them.
New windows are expensive, but nothing takes an older home up a few notches above average than new windows. If you can't afford to put new windows in, make sure that they are cleaned inside and out by a professional to help them look their best. Look at the sills and if they are cracked or yellowing, paint them. Lastly, make sure that the blinds are clean and in good condition. If they aren't, consider replacing the window coverings to make them look top-notch.
To get a good profit off your home after selling it, you have to ensure a proper and thorough refurbishing. Speak to a real estate agent in your neighborhood on how to get the best value for your home.