In addition to being the longest month of the year and its fame for “…going in like a lion and out like a lamb…” (which we have certainly been experiencing!) March is also Credit Education month. Sounds boring compared to St. Patrick’s Day (another March favorite) however, when it comes to buying a home, credit is anything but.
Understanding your Credit
So much of a home purchase is driven by credit: Credit scores, debt too income ratio, and ability to keep credit intact during the loan process, so understanding credit is vital.
We are all constantly bombarded with credit offers and need to be sure we are acting thoughtfully when opening up lines of credit. The Consumer Finance Protection Bureau offers plenty of information regarding credit including types of credit, applying for credit, managing disputes, reading a statement, getting credit scores, debt collection, and mortgages.
Credit and the Mortgage Process
It is important to remember that during the loan process no major purchases should be made or additional lines of credit opened, and all bills need to be paid on time. Anything that impacts credit may also impact the home loan when a credit refresh is pulled prior to closing.
Of course, if you have any questions about the role of credit in the home purchase we are happy to answer them and get you pre-approved at the same time.
Now-time for spring!
The material provided in this newsletter is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is not without errors.