Home Buyer Tip | Sacramento Real Estate Homes For Sale


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Home Buyer Credit Score Sacramento First Time home buyers often ask if their credit score is REALLY all that important.

The answer is a big, YES.

Your credit score is like the grade you received in school. The higher points you made on a test the better grade you got.

The higher your credit score, known as the FICO score, the better interest rate you will receive on a real estate mortgage loan, a car loan and credit cards.

Believe it or not, there are times when a job is not given to someone who would have qualified but unfortunately, they had bad credit.

Home Buyer Example: Five home buyers want to buy the same house. Each of the five 1^st Time Home Buyers have different credit scores like the photo above.
Unfortunately, home buyers with D and F scores wont be able to buy a house until they budget and pay their bills on time.
Home buyer A will pay less on the home mortgage loan payment each month than home buyer B or C. And frankly, has better terms on the mortgage loan.

If you want the best loan with the best interest rate, it is important to pay your bills on time. Bankruptcy and home foreclosures affect your credit score for a long time.

Loaning money is getting harder and over this next year will get even harder, so its important to PAY YOUR BILLS ON TIME and BUDGET.

Be sure to read What are ABCs of Buying A House? before you buy a home.

Know what kind of mortgage loan you will have, if you dont understand your mortgage loan and the terms, ask questions. Dont just sign your name to something you dont understand, fully.

As always work with an experienced REALTOR and reputable mortgage Lender. Those two people will be the key to a successful future in your home buying process.

Ask your mortgage Lender for a Good Faith estimate on what the costs of your loan will be. Dont be surprised at the last minute. Know up front how much it will cost you to get this loan. Lenders are required to give you a Good Faith estimate.

Be sure to read Credit Score Tip with links to the 3 credit reporting agencies, Equifax, Esperian and Tans Union. Be proactive, know your score and check on it regularly.

Here is a SAFE website by the Federal Trade Commission where you can learn more about Credit Reports and get a free annual credit report. (stay away from websites that ask you to pay for a credit report. You are entitled to a FREE one each year)

Have a wonderful weekend, pay your bills on time and if you are looking for a home, condo for sale in and around the Sacramento area, give me a call.

Special Tip: Dont cancel a credit card that you have had a long time. The longer who have a credit card with a company, the better your credit rating. Always ask a reputable professional before cancelling any credit cards.

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