A good credit rating makes it easier to borrow money in general. When you are shopping for homes for sale in St. Augustine, it's an important first step in buying your first home.
Your credit rating shows lenders that you have handled the repayment of debts responsibly in the past. A poor credit rating indicates to lenders that you either could not or did not repay the money that you borrowed in the past. It may be difficult to convince a lender to risk lending you money again, particularly for such a large purchase as a home.
It's been said that credit is a privilege. You must protect your credit rating by paying your debts on time and as you promised. Many do not realize that the importance of a good credit rating goes way beyond making it easier to purchase a home.
•· Loan rates are typically determined on the basis of your credit score. People with good credit get the lowest interest rates.
•· Insurance rates are also affected by credit ratings. Insurance companies rely on credit scores to when quoting rates. A good score will help you qualify for better rates.
•· You may have difficulty in renting a home or apartment if you have a poor credit rating. The Landlords will want to make sure that you will pay your bills on time.
Some people have no credit history because they have no credit cards or financed a car or other purchase. This may be a stumbling block in purchasing a home in St. Augustine as a lender wants to see a pattern of regular and timely payments. This will insure their comfort that you will repay your loan with them the same way.
If you do not have a credit history you may use a combination of canceled checks, receipts, utility bills and rent statements. When combined, these document show lenders that you have that history of making regular and timely payments and are a better credit risk.
It is always best to be pre-approved before you start shopping for your new home. This process will include a credit check and your Mortgage Professional will review the findings and offer recommendations if needed. As your REALTOR, I work with a Home-buying Team to help buying your homes in St. Augustine an enjoyable experience.
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