bad credit scoreYour credit score matters. If you’re planning on buying a house, one of the first things you’ll want to do is check your credit. If you have bad credit, it can greatly affect your ability to qualify for a mortgage with beneficial terms. The following are just a few ways in which having bad credit can effect you when buying a house:

  • Qualifying for a mortgage – Your credit score helps lenders determine how financially responsible and capable you are of paying your mortgage payments on time and in full. The lower your score is, the bigger of a risk you are. If your credit score is particularly bad (say, sub-500), then the lender may refuse to even qualify you for a mortgage.
  • Larger down payments – The less you owe, the less of a risk you’ll present to the lender. This means that if you have bad credit, the you may be required to provide a larger down payment to help offset the risk that the lender is taking on you.
  • Higher interest rate – If you have bad credit, then odds are your interest rate is going to be quite high. Not only will your monthly mortgage payments be higher, but you’ll end up paying much more over the initial cost of the house once you’ve finally paid off your home mortgage loan.

These are some of the ways that bad credit can affect you when you buy a house. Even if you are able to qualify for a mortgage with your bad credit score, you may want to consider holding off and working on improving your credit. Doing so can help you obtain better terms, which will benefit you over the long run.

MY BIO

Randy has enjoyed over 25 wonderful years in the Real Estate industry making dreams come true for homeowners.

Superior customer service is #1 to Randy and he provides this to all of his clients using knowledge, professionalism, integrity and persistence.

Randy is a successful and experienced real estate agent who expertly represents both buyers and sellers. Scores of Charlotte area residents have trusted Randy in the process of listing their homes to sell.

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Real Estate in Rock Hill,

Fort Mill and surrounding

York county

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1425325
"Randy was very easy to work with. He was open and honest, and always there to answer any questions or concerns we had. He was available and worked ... more "
5.0/5.0
by Diana Holliday
1422016
"My wife and I worked with Randy to sell our home located in the Lake Wylie area. Great job of preparing the information and advertising for the ... more "
5.0/5.0
by Bruce Dycus
1421990
"Randy actually helped us sell our old house and buy our new house. He was honest and hardworking and sold our home in a week. We were pleased with ... more "
5.0/5.0
by Jennifer Tobin
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