If you are purchasing a house, one essential factor you need to consider is your credit score. Only then you will be able to select the right loan option. In addition to this, your loan application will also be accepted
Take note, first time home buyers: there is no denying the fact that it gets easier to purchase a house if you have a better credit score. Moreover, you get the best property at a lesser rate of interest. Nevertheless, there is a lot that is going on these days when it comes to the first time home buyer credit score, there are a number of myths that are spread by one another. This is because either they have zero or less knowledge or because they have also beloved someone else. Whatever the reason is, this piece debunks the ongoing myths related to credit scores.
Myth #1: Avoid shopping
The biggest myth you might hear about a credit score is shopping. There are so many people who think that shopping might affect your credit score. However, this is not the truth. In fact shopping saves you thousands of dollars and also gives you a number of options to select from.
Myth #2: Paying all the debt will enhance your credit score
Are you paying all your debts on time? If yes, then this clearly means that you have very few active credit accounts, and chances are your score may reduce by a very little number.
Myth #3: A negative credit history will not help you land a suitable mortgage option:
This is just not the truth. One of the biggest myths which is going around is someone’s credit score and their ability to buy a new home if they did not have a bad credit history in the past. People think that they will not get the right mortgage option if they had bad credit in the past. But that’s not the case at all. The mortgage professionals will work with you even if your credit score was not up to the mark before. It is just that you will have to settle for a more down payment, and the rate of interest might also be higher than you have expected.
Myth #4: A better job, better credit score: Who said that you cannot apply for a loan if you do not have a better job? Well, you have to meet the eligibility criteria, and that is what decided if your loan application will be accepted or rejected. You just need to have a stable job. That’s it. If you fulfil the requirements of the lenders, and everything is up to the mark, the loan application will be accepted and you will have the money.
The Final Thoughts
These are some of the credit scores needed for first time home buyer myths. Do not let some stupid myths stop you from getting the best deal at less rate of interest. Get in touch with a professional and clear your doubts if any. People share what they listen to from one another. At times it may be true or not. Hence, before getting started, we recommend you speak to an expert.