My life as a number: importance of Credit for 1st time buyers

Real Estate Agent with Re/Max Santa Clara Valley, San Jose, Campbell, Cupertino

Credit is an important part of buying a home. Lenders will scrutinize your credit history to determine if you're qualified to buy a home and what interest rates and fees to charge. The difference between having a just okay credit and good credit can cost you tens of thousands of dollars over the life of a loan. Here are some practical tips to establish good credit:

*Having a steady source of income and stable employment for 2-3 years


*Having a good record of paying your bills on time - the common myth is that paying off balance monthly gives you a <p><a href="">Image: digitalart /</a></p>good credit points; when in reality, paying ON TIME is what matters the most.

*Keeping outstanding long term debts, like a car loan


So how do lenders check your credit history? The answer is by running a credit report. A credit report gives others a "snap shot" of your credit worthiness. It will show what types of credit you currently have and/or what you have had in the past. It also shows if you have paid your bills on time, filed for bankruptcy or if you have ever been evicted from a rental property.


Before you decide to buy a home and start shopping for lenders, it's best to get a good handle on what your credit situation. For a small fee (generally, $15-$20), you can order your credit report from one of the three major national credit bureaus. Annually, you may get a FREE copy of your credit report.


For more information, please go online:






If you determine that your credit is in bad shape, you may want to wait to buy a home and spend some time needed to repair your credit instead. I can help and refer someone. Please contact me for more info.


Next related topics is CREDIT SCORE, which you will hear about when the lenders explain to you what you may qualify. 




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Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Evening Chia

Thanks for the credit score information and valuable links. Have a great day

Mar 28, 2012 09:03 AM #1
Chia Rodeski
Re/Max Santa Clara Valley, San Jose, Campbell, Cupertino - San Jose, CA
Real Estate Agent San Jose, 1st time home buyer, Short Sale

Thanks Patrick!

Mar 28, 2012 09:26 AM #2
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Chia Rodeski

Real Estate Agent San Jose, 1st time home buyer, Short Sale
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