Shopping for a mortgage without killing your credit score is actually easy. Inquiries on your credit have a small impact relative to the overall credit score. The most important factor in your credit score is your payment history. The most basic factor in your credit is how you have paid your bills in the past is the best indicator of how you will pay your bills in the future. The best estimate is that a credit inquiry will cost you 5 points on your score. For questions about credit scores click here.
There is a difference between shopping for credit cards and mortgages. Get ready for some logic and common sense. If you shop for 10 credit cards; you just might open 10 credit cards and increase your potential liabilities and increase your credit risk. If you shop for 10 mortgages you are not going to open 10 mortgages. The credit companies accept this and give you a time-frame to shop without counting the inquiries against you. I usually recommend that the time frame is 10 days to shop.
To receive an accurate mortgage quote a credible lender needs to know what your score is. There is this little process called "loan level price adjustment" that needs to be calculated for an accurate quote.
Forecasters continue to forecast increasing home prices for the remainder of 2012 and into 2113. When interest rates drop it changes the Rent Vs. Buy equation. When house payment drop relative to rent payments more people consider buying. With more buyers there is more demand and with more demand the price increases.
We also have to factor in the low rate of construction over the last few years. Will it get crazy and have huge price increases each month? Unlikely. Will prices increase? Likely. Is it a good time to buy? Yes. Low home prices and low interest rates is a rare combination and buyers should take advantage of it.
Gas maintains $4.00 per gallon in Washington.
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