Real Estate Credit
Credit needed to buy real estate is not the same thing as having good credit scores.
Besides your credit score, mortgage lenders consider your debt-to-income ratio and other credit matters, unlike other credit grantors. Qualifications for consumer credit, such as credit cards, personal finance company loans, and auto financing, differ from mortgage qualifications.
In fact, you get different credit score ratings when you shop for an auto or consumer loan. Read that again. You get different credit score ratings from different types of lenders. Loan officers for mortgages see a different credit score number than an auto finance credit manager sees.
One day, my husband's middle credit score for mortgage financing was 725. Later that day, his credit score was 760 for auto financing. Credit scoring models differ for different types of loans. So, if you've recently been told that your credit score was a certain number, don't think that other credit granters get the same number. You can buy a car and get a credit card based
on one credit formula, but you might not qualify for a home mortgage.
On the other hand, just because you've been turned down for a credit card or an auto loan, doesn't mean that you can't buy a house! If you're paying rent, you can afford housing. Often, rent costs more than a housing payment. Mortgage lenders know this fact.
Tip
Don't waste your money buying your credit score. The score you get will not be the same score a car dealer or a mortgage lender sees.
When you apply for financing to buy real estate, lenders review your credit report, which they rate by your credit score. To qualify for mortgage financing, other factors come into play. Understanding all the qualifications helps you prepare for the best possible rates and the lowest mortgage costs.
Jeanette Fisher teaches how to get out from under credit card debt, how to use credit to make money, and six ways to build strong credit to finance your first home and multiple investment properties.
Free ebooks "Credit Tips" http://worryfreecredit.com
"Flipping Houses" real estate investing information
Besides your credit score, mortgage lenders consider your debt-to-income ratio and other credit matters, unlike other credit grantors. Qualifications for consumer credit, such as credit cards, personal finance company loans, and auto financing, differ from mortgage qualifications.
In fact, you get different credit score ratings when you shop for an auto or consumer loan. Read that again. You get different credit score ratings from different types of lenders. Loan officers for mortgages see a different credit score number than an auto finance credit manager sees.
One day, my husband's middle credit score for mortgage financing was 725. Later that day, his credit score was 760 for auto financing. Credit scoring models differ for different types of loans. So, if you've recently been told that your credit score was a certain number, don't think that other credit granters get the same number. You can buy a car and get a credit card based
on one credit formula, but you might not qualify for a home mortgage.
On the other hand, just because you've been turned down for a credit card or an auto loan, doesn't mean that you can't buy a house! If you're paying rent, you can afford housing. Often, rent costs more than a housing payment. Mortgage lenders know this fact.
Tip
Don't waste your money buying your credit score. The score you get will not be the same score a car dealer or a mortgage lender sees.
When you apply for financing to buy real estate, lenders review your credit report, which they rate by your credit score. To qualify for mortgage financing, other factors come into play. Understanding all the qualifications helps you prepare for the best possible rates and the lowest mortgage costs.
Jeanette Fisher teaches how to get out from under credit card debt, how to use credit to make money, and six ways to build strong credit to finance your first home and multiple investment properties.
Free ebooks "Credit Tips" http://worryfreecredit.com
"Flipping Houses" real estate investing information
posted by Jeanette at Monday, December 19, 2005
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