Your credit score is one of the biggest hurdles that you come across when trying to get a loan. We all know that a good credit score helps us to lock down better monthly payment terms and a low interest rate. The faster you pay your debts and bills, the easier it will be to maintain your credit score. In order to buy a house for sale in Sandy Springs, GA, you need to have a credit score of 740.
As long as your credit line’s balance is below 20%, you are good to go. However, the road to buying a house is not that easy. There are certain sacrifices you need to make regarding your lifestyle to save more. Still, if you are worried about your credit score shooting down your dream, then keep reading.
Following are 5 myths about credit score that is keeping you from buying a house:
1. More Money = Higher Credit Score
More money in your bank account does not impact your credit score. Still, it is a strong motivator for the lender to approve your mortgage application. It gives the lender a peace of mind that you have the means to pay back the loan with the interest rate in time.
2. Owning Several Credit Cards Will Hurt Your Score
Owning more than two credit cards will only hurt your credit score if your overall spending goes above 20% of the credit line. In some cases, this can be somewhat helpful as you can balance your debt with the available credit. Since house for sale in Sandy Springs, GA are a bit pricier than the real estate market in the other cities, you need to make sure that your daily spending is in control.
3. Closing and Opening Credit Lines Will Have a Huge Impact on Your Score
Opening new credit lines because you can’t pay the old ones and closing old ones because they have incurred too much debt is a sure way to let your credit score go down the drain. Again, this affects your debt with the available credit and makes the lender hesitate in giving you a loan.
4. Combing Credit Lines Will Increase Your Score
Moving all your debts to a single credit line can have both negative and positive impact on your credit score. There’s a possibility that the debt will get out of hand and you won’t be able to pay it on time. On the other hand, if the interest rate on the credit line is lower than others, then you can pay the outstanding credit faster.
5. Liens and Judgments Don’t Lower Your Score
If someone has filed a lien against you, your credit score will fall drastically. Payments such as these make up 35% of your credit score.
You can easily get your credit report for $3 from your bank. As long as your credit score is on the up and up, the lenders will be eager to give you better interest rates with a lower down payment. This is because they believe you will be able to make the monthly payments on time.
Planning to buy a house? Visit America’s Network Reality Group Inc. and enter your specifications to find your dream house in the neighborhood of your liking.