Posted by 2 weeks ago.
If you are looking to relocate and buy a home in southeast Michigan in the near future, one of the tasks at the top of your list should be checking your credit score. Yes, before you even start perusing the homes for sale in Lenawee County and the surrounding area, you should check your credit score at one of the major credit bureaus such as Equifax, Experian, and TransUnion.
How will checking your credit score bring you closer to buying the home you want? It all comes down to your ability to access affordable financing and get a mortgage preapproval. This is important and should be something that you do soon after you check your credit score. Why? So that when you do find a property that you want to make an offer on, you know what you can afford given your home-buying budget.
Some home buyers are hesitant about checking their credit score, because they believe that doing so will lower it. This is a common misconception. The truth is, checking your credit score does not impact it. However, keep in mind there are things which may negatively impact your credit score such as:
- Opening multiple new lines of credit, such as a credit card or loans
- Not paying off existing debts
- Consistently being late making payments on existing credit
Conversely, avoiding doing the things above will help to improve your credit score. Don't avoid applying for any form of credit whatsoever. Having no credit history can have an equally poor effect on your credit score. You need to show credit bureaus and lenders that you are a responsible user of a moderate amount of credit.
It is also important to remember that your credit score is fluid. It may even vary slightly among credit score providers. Unless your credit score takes a serious plunge for a prolonged period, you shouldn't worry about minor variations. In general, lenders rate credit scores as follows, according to Credit.com:
- Excellent Credit: 750
- Good Credit: 700-749
- Fair Credit: 650-699
- Poor Credit: 600-649
- Bad Credit: below 600
Another key reason why potential home buyers should check their credit score prior to house hunting is so that they know where they stand and can take corrective action to improve their credit score if needed to be able to get financing or to get a better rate on a home loan.
Building stronger credit is a long game. By checking your credit score you can see the progress you are making toward a good credit score or be aware of when you need to make changes to improve it. Given all of the reasons why you should check your credit score, make it a regular habit to do so, even if you aren't house hunting. If you are looking to buy a home this spring, check your credit score now, talk to a lender about getting preapproved for a mortgage, and contact The Wagley Group to get started on your home-buying mission!
Tags: Michigan home buyer tips,Wagley Group,Lenawee County,credit score,credit score for mortgage loans