Get Credit Aid For Real Estate Purchases! |
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By: Sarah Dinkins Posted: 2006-11-12 22:31:47 |
| Eliminating Some Myths It is believed that paying off credit card debt improves credit score, that closing accounts improves credit score and that it’s impossible to get finance to purchase a property without having a proper financial and credit situation.But interestingly facts are that paying off your credit cards bluntly can lower your credit score, closing credit accounts also lowers your credit score, and you don't really need perfect credit to buy real estate. Yet, if you are looking for credit help to buy a property, it is wise to improve your credit score.Saving Thousands The core of the whole tale is that if you maintain good credit you will save thousands in loan costs. No doubt with poor credit you will also be able to buy real estate but it will prove futile to you as the rate of interest will touch the peaks. Hence, a bad credit report won’t do much for you. It leaves homebuyers with sub-prime loans, which has higher point charges, prepayment penalties, and higher interest charges too.If you want to get lower interest rate for sub-prime loans, you can get credit help from creditors or credit bureaus. Credit history is listed by the credit-reporting agency as supplied to them by the individual lenders and includes governmental records too. Each report assigns a credit score number to you. The credit scores reflect your theoretical risk of default to the lending institutions.Credit Score and History Credit scoring is reliable as it is based on real data and statistics. It has definite point of accuracy. It treats all applicants objectively. Credit report is a crucial part of many credit-scoring systems. So it is very important to make sure that it is accurate before you submit a credit application. You can get credit help from credit counseling companies to improve your credit score prior to applying for a loan.How Qualification Works You are endowed with three credit scores, often called FICO scores, one from each credit bureau. The lender takes the middle score as your baseline. Lenders have different standards, but generally a “C” score is around 500 to 600, a “B” is around 600 to 680, and an “A” is above 680. Over 700 is the magical number that gets you the attention you desire. If your score is under 500, find someone to get credit help privately for you or a partner with good credit while you work on improving your score.But be sure enough that real estate lenders will also consider your employment qualifications and your overall debt ratios. To sum up, credit help is very productive in buying real estate. If you think you won’t be able to qualify for a home loan in you current situation, get aid to improve your credit score and history before applying. That will definitely increase your chances. |
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