Most homebuyers are not wealthy enough to purchase a house outright. They usually require a mortgage loan in order to bid on a dream property in the Erath County homes area. This is generally a straightforward process in which the banks check your credit rating to determine whether giving you a loan is safe or risky.
Your past history of timely bill payments, credit card obligations, and any recent major purchases all affect your credit rating. There are three private agencies that track your credit score: Equifax, Experian, and TransUnion. It’s generally a good idea to get reports from all three companies before applying for a mortgage loan. Discrepancies in one report may negatively impact your chances of receiving a low-interest loan, so having all three ensures you don’t get cornered into an unfair contract.
You can either order your credit report through the mail, in which case it usually arrives in one week and details the last seven years, or you can view your credit history online in seconds provided you have a credit card to charge. In these reports, you’re shown how much credit has been given to you in the past seven years along with your current balance still remaining the last time a creditor checked.
Bank lenders are interested in how many times payments were late. If it’s only one payment less than 30 days late, there’s nothing to worry about. However, if there are multiple late payments stretching beyond a 30-day threshold, chances are low you’ll be getting a loan with a reasonable interest rate.
There are some things to consider when you’re trying to secure a mortgage loan. Even if you have bad credit, there is a seven-year maximum before its history is erased and you start anew. The only exception is in cases of bankruptcy, but it’s highly doubtful you’re looking to purchase a new Stephenville home if you’re bankrupt.
Furthermore, bank lenders care more about recent credit behavior than the past. As long as you made regularly payments over the past couple of years, chances are you’ll get approved albeit with a slightly higher interest rate.
If you’re interested in viewing property in the Stephenville area, please contact us today!