Importance of Credit Score When Purchasing a Santa Cruz Home

Posted by Lauren Spencer on Wednesday, March 21st, 2012 at 1:01am.

You’ve found the perfect Santa Cruz home that you know should be well within your budget. Now all you need to do is secure the loan — but you’re turned down by bank after bank. In today’s economy, many buyers are facing this exact issue. They have the means to meet their potential mortgage payment. Unfortunately, an issue in the past damaged their credit score and it’s preventing them from getting a loan.

If you’re contemplating purchasing a Santa Cruz home, especially if you’re a first-time buyer, you need to do everything you can to boost your credit score. This will make it more likely that you’ll qualify for a loan and will help you secure a lower interest rate. Below are a few steps to get you started:

• Get a free credit report. You can do this at https://www.annualcreditreport.com once a year. This site is maintained by the FTC and is the only site that provides a truly 100% free credit score. There are other sites with similar names, but they are not to be trusted because they are not maintained by the FTC. If you prefer not to use the web, you can also get your free credit report by calling 1-877-322-8228.

• Check your credit score. A score of 780 is excellent; however, you should be able to secure a loan with a score of around 720. If your score is low, you might want to consider renting for another year while you work to improve it.

• Ensure there are no errors. If a credit card company has you defaulting on bills for a card you never opened, you could be a victim of identity theft. Start working to have any errors removed immediately — they’ll be more difficult to fix the longer you wait.

 Pay down debt quickly and on time. Paying off your debt as quickly as possible and on time will help to steadily increase your credit score.

Working to maintain and improve your credit score will make purchasing a new home, or refinancing your existing one, much easier on your pocketbook and your sanity. Also, shop around and check with multiple loan agencies, such as a national bank, a local bank and a credit union because they might yield very different interest rates based on your credit score.

If you’re ready to purchase a Santa Cruz home, I can help.  Please give me a call today at 831.662.6522 or email me at Lauren@LaurenSpencer.com.

For additional real estate information, visit my homepage at www.MySantaCruzRealEstate.com.

Links:

First-Time Home Buyers

Annualcreditreport.com

Improve Your Credit Score

 

 

About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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