Easy Ways Your Credit Can Hurt You #2 - Buying a Home
The real estate market here in Dallas is primed for anyone who wants to start making a purchase.
With that being said you do need to spend some time doing your homework and know how you can help and hurt yourself.
The first thing you have to realize is that you can not just wake up and say you want to buy a home, you need to take months and even years to prepare for it.
It starts with knowing what a lender will demand from you when you apply for a mortgage.
First you will need to have a down payment of about 20% of the score.
That can be expensive even if you get a great deal on the home.
Figure a $150,000 house, a relatively cheap deal these days, will still require a deposit of at least $30,000 that does not include closing costs, moving expenses, and any repairs and additions you need to make to the new place like furniture or accessories.
Once you have the physical money saved up to apply for the loan you need to then make sure you make enough money to cover the mortgage payments.
If your payment will be about $1,000 a month, the lender will require you to make at least three times that to make sure you can afford the bill.
Once you have those two obstacles out of the way it will be time to check on your credit score.
A bad score can hurt you a lot when you apply for a mortgage because you are not only at risk of getting rejected, but if you are approved you can end up over paying by hundreds of dollars a month and wasting thousands of dollars a year.
If you are concerned that your score will cost you a lot, you need to do what you can to make sure it is fixed.
That's why you need to get credit repair.
There are many credit repair companies here in Dallas that will help you to fix your score in a matter of weeks, at an affordable price, no matter the reason it was lowered.
With that being said you do need to spend some time doing your homework and know how you can help and hurt yourself.
The first thing you have to realize is that you can not just wake up and say you want to buy a home, you need to take months and even years to prepare for it.
It starts with knowing what a lender will demand from you when you apply for a mortgage.
First you will need to have a down payment of about 20% of the score.
That can be expensive even if you get a great deal on the home.
Figure a $150,000 house, a relatively cheap deal these days, will still require a deposit of at least $30,000 that does not include closing costs, moving expenses, and any repairs and additions you need to make to the new place like furniture or accessories.
Once you have the physical money saved up to apply for the loan you need to then make sure you make enough money to cover the mortgage payments.
If your payment will be about $1,000 a month, the lender will require you to make at least three times that to make sure you can afford the bill.
Once you have those two obstacles out of the way it will be time to check on your credit score.
A bad score can hurt you a lot when you apply for a mortgage because you are not only at risk of getting rejected, but if you are approved you can end up over paying by hundreds of dollars a month and wasting thousands of dollars a year.
If you are concerned that your score will cost you a lot, you need to do what you can to make sure it is fixed.
That's why you need to get credit repair.
There are many credit repair companies here in Dallas that will help you to fix your score in a matter of weeks, at an affordable price, no matter the reason it was lowered.
