The Importance of Home Mortgage Credit

Tuesday, April 20, 2010

When shopping for a home, your home mortgage credit rating will determine a lot of what you are able to do and what you will be able to qualify for. So, before you go out and try to pre-qualify for a home mortgage loan, the first thing is to find out what your credit looks like through viewing your credit report. Ultimately your mortgage payment will depend more on your home mortgage credit because that will determine the interest rate you will receive on a loan.

Once you've got a good look at where you stand on your home mortgage credit, there are steps you can take to fix what is wrong and make it better. You can contest any bad marks that you find on your credit report and get them resolved and cleaned up. That will definitely do wonders for what your home mortgage credit looks like when you visit your lender and you'll have an easier time qualifying for the home of your dreams.

A fifteen, twenty or thirty year loan is a long time to be paying, so you want to strive to get the best rate you possible can. Your home mortgage credit will determine the interest rate you will be paying during that long loan period known as the life of your loan.

On short loans, like a car loan, your down payment makes more of a difference than your interest rate, but the opposite is true on longer term loans like a home mortgage. Therefore, the home mortgage credit score will make a huge difference there. The down payment on your home is more to avoid that nasty home mortgage insurance they tack on, more than any thing else, so take good care of your home mortgage credit to ensure you will receive the best rate and therefore have the best payment you can on your mortgage loan.

Source: tammynelson

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