Credit Myths You Need to Know Before Buying Your Port St. Lucie Home
If you have good credit and think you won't have any problem
buying a Port St. Lucie Home in Florida, you might need to think again. Most people with good credit have many common
misconceptions about their credit and how it could affect their likelihood of
being approved for buying a Florida home.
When in fact, having good credit, even extremely good credit, doesn't
necessarily mean you are a good risk in the eyes of a mortgage lender. Keep reading to learn some of the most common
credit myths that could cost you thousands of dollars over the life of your
mortgage loan.
1. Do you have a large amount of cash? Do you have a fairly high income? Do you have some reasonable equity in your
home? If you answered yes to those
questions, you probably think your FICO score is not a factor. That is false. The fact is that your credit score is what
determines whether or not you will be approved for a home loan. It
will also determine what the interest rate will be for that loan. There are only two exceptions to that
rule. If you pay cash or if you put down
a great deal of money on the home.
2. Are you debt free? Do you pay all of your bills on time? If you answered yes to those questions, you
probably think you have what is considered good credit. That is false. Lenders look at your credit differently than
you do. A lender will look at your FICO
score to see how well you manage your debt and your credit. The lender will look to see if you're at your
limit on your credit cards, and if you are, but you continue to apply for more
credit, a lender will consider that credit abuse.
However, if you have credit, but don't carry any credit
balances on the credit you have, that doesn't mean you have good credit in the
eyes of the lenders. You may find this
hard to believe, but you will get a higher FICO score if each month you carry a
balance of 30% of your credit limit and you continually make your payments on
time. This is where most people are
completely baffled, because common sense, in most people, would tell them that
no debt is a good thing, when in reality it's not. Go figure!
3. Have you experienced a short sale or a
foreclosure in the past? Many people
believe that if they've had a short sale or a foreclosure in the past, they
can't qualify for another home. That is
false. Remember what we've been talking
about? Your credit score is the number one
factor in determining whether or not you will be approved for a loan. So even though the short sale or foreclosure
will stay on your Experian and Transunion credit reports for seven to ten
years, that doesn't mean you can't work on improving your credit score enough
to buy another home sooner rather than later.
In order to achieve this, you will need to start paying your
bills on time. It will also require that
you have a reasonable amount of money to put down on your new home. And if you had any extenuating circumstances
that caused your short sale or foreclosure to occur in the first place, that
should be explained. This alone could
help lead to a more likely approval and quite possibly a lower interest rate.
The bottom line is to save your money and use your credit
accordingly. Take all of these credit
tips we've given you to get the most desirable loan you can. Your best bet is to talk with a Florida realtor
about buying a new home.
A Florida realtor has plenty of experience in dealing with Florida
mortgage lenders. A realtor will assist
you in making the necessary corrections that could lead to a mortgage approval
and quite possibly the lowest interest rate available for your new home. Asking a Florida realtor for assistance could ultimately
save you thousands of dollars over the course of your loan. And who doesn't like to save money? Exactly!
Having the right real estate agent means having an agent who
is committed to helping you buy your new home with the highest level of
expertise in your local market. This commitment level has helped Bold Real
Estate Group build a remarkable track record of delivering results.
Are you tired of scouring the newspaper and MLS listing
sites looking for homes in Florida? Sit back, relax and let Bold Real Estate
Group and our team of professional Realtors do the work for you! Just visit our
website and check off the properties you’re looking for
www.BoldRealEstateGroup.com, is FREE and there’s no obligation! or send us an
email communityinfo@comcast.net
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About the Author: Carlos J. Gil has been a successful Licensed
Real Estate agent in Florida. Carlos is President of
Bold Real Estate Group, a boutique agency committed to concierge personalized
service for discerning buyers, sellers and renters of residential and
commercial properties. Bold Real Estate Group is a licensed Real Estate Broker
company in Florida, proud member of The National Association of REALTORS®
(NAR), which represents over 1,200,000 REALTORS® in the United States, member
of the Who’s Who in International Real Estate and The International Consortium
of Real Estate Association, which represents over 2,300 Real Estate
Professionals throughout the World. Bold
Real Estate Group is your resource center in Florida for buying, selling and
renting services of residential and commercial properties.
