Buying Your First Homes: Home Loans And Interest Rates
Buying your first home is an exciting yet very stressful process. First, you have to do a ton of looking around to find the type of house you want. If you have a wife, then you have to basically get what she wants and settle for a man cave. After you have looked around at every house, you need to then figure out how to afford it. You need a down payment, good credit, a job and then you need to qualify for a home loan. Can you see how stressful it is? Although, it is stressful buying a home is the best investment anyone can make and it is a path to wealth. This article will give the reader a few tips on purchasing their first home, how to understand interest rates and how to build a higher credit score from N1- Home Mortgages Online.
Credit Score & Employment
We are starting with what is the most important aspect of buying a home, your credit score. You can whip around town for weeks, save a down payment and watch HGTV marathons all you want but you will not qualify for a home loan unless you have good credit. What is the essence of good credit? The essence of good credit are paying your bills on time, properly using your credit balance and not opening a ton of credit accounts. The bulk of your credit score is based on if you pay your bills on time, the next thing is how much of your available credit you use each month. It is recommended to never use more than 20% of your credit line each month. If you have to use more then you need to pay it off by the end of the month. The most important form of credit is revolving credit such as credit cards. Credit cards give people the most trouble but if you are smart you can easily use them to help increase your credit score. Another thing you should do is never close your credit accounts. Life of credit is another factor that is used to determine your credit score.
As you can see, credit is king when you need to qualify for a home loan. Follow the steps in this article to improve your credit score so that you can qualify for a new home loan with a good lender and receive a low interest rate.
As you can see, credit is king when you need to qualify for a home loan. Follow the steps in this article to improve your credit score so that you can qualify for a new home loan with a good lender and receive a low interest rate.