Buying that first home is something that many people aspire to do, but for many would-be buyers there are hurdles that stand in the way of their dreams. In the current financial climate, these hurdles have gotten much higher for some making it all the more difficult and challenging to get financing. And without a near perfect credit score, some may have quite a wait until requirements grow more lax. A fantastic credit score in 2007 may well spell “impossible” in today’s real estate climate.
Industry officials have warned potential buyers that their credit status and score have become even more important. Banks are extremely cautious, even over cautious when making mortgage decisions these days. It only makes sense that qualifying would be harder, especially since lax regulation was partly the cause of the crisis in the first place. In some cases even long time bank customers with near perfect credit have not been able to secure financing. So imagine the plight of those who have had the slightest problem with credit history.
The best advice for potential home buyers is to find out what your credit score is, and try and correct any issues before asking a lender for assistance. Sites like MyFico offer complete credit score information, much of it for free. These portals, while offering some premium products that will cost you, do reveal a great deal more information via seminars and other instructional too. Not many people realize too, that their credit scores affect a lot more than just getting a mortgage.
Credit scores are increasingly used to determine such things as auto and home insurance rates, rental housing availability, and even whether or not you can get a cell phone. So it pays off to do some homework on this subject, but more importantly do everything possible to make sure your score is tip top. Consulting with a trusted and experienced real estate broker is also recommended. There may be buyer strategies or possibilities only your local agent will know about.