CREDIT SCORES AND YOUR BUYING POWER

Everyone has one. Is it 650, 730 or 570?

Will your credit score effect your borrowing leverage? Yes it will.

The three main things that help you have a good credit score are first, having a long history of making all debt payments on time, second using the proper mix of credit, and third not maxing out on available credit.

Combine these 3 key elements and you get a good credit score. A good credit score = better rates and ease in applying for a mortgage.

There are a couple of credit bureaus such as; TransUnion or Equifax. Either one can be used when a lender requests your credit history.

Here is a link to a credit score rating tool. It only estimates your credit score based on the answers you supply and must not be relied on as accurate.

If you are thinking about making a purchase of a home this year, check out the tool above and then contact a REALTORÒ hopefully me! The REALTORÒ will guide you through the steps necessary to find a great home for you including introducing you to a mortgage professional that will run a credit check on you to determine your buying power.

One final thing to remember is, the more times a credit check is run on you also figures into your credit score.   Having a mortgage broker run one check while working with various lenders to obtain a mortgage on your behalf is much better than having 3 or 4 banks run separate credit checks. Each check is a check mark against your good credit. So caution should be used when applying for a mortgage.

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