Is your credit in tip top shape, or is it the Phantom Menace? Lenders don’t mess around anymore... we all know how difficult lending guidelines have become, and most loan programs have minimum credit score requirements and the cost of obtaining your interest rate will also be determined by your score.
Your credit profile is so important when an underwriting decision is made for the approval of your Santa Rosa home mortgage. It's not just about your score... it's about your overall use of credit that is taken into consideration by the Jedi Underwriter. Most people are really confused about credit, so it’s important you really understand your credit score, what makes up that score and the components that go into it.
You may even be one of those unfortunate people who have common sense and just don’t use credit much, in which case you can find yourself in a challenging position by the underwriter. Go figure... the fact that you pay cash for everything and actually live within your means is considered ‘riskier’ to the lender since they have no way to gauge your payment performance, so go out and establish some trade lines, take out some credit cards and use them wisely, and it will build up your profile and score. But this does take time, so start now! Here’s more information on just how many tradelines to have is a good idea.
Don't let less than stellar credit stop you from the dream of buying your own home in your part of the galaxy. Take time, you must, and work on getting your credit profile into top shape before you start looking... it will save you hours of time, emotion and frustration....not to mention nasty surprises on interest rates and tougher conditions from the lender. A good credit profile really can make a huge difference!
May The Force Be With You!
Comments(3)