How Your Credit Score Can Affect Buying a Home

Buying a home can be a daunting task; financing a home can be downright painful.

buy home effect credit score

However, there is hope, and with a little preparation one can avoid many of the problems that can arise. The most important way to begin is to check your credit score ahead of time. This score is what all lenders will look at it when you apply for a loan. It is designed to measure your credit worthiness. Your credit score can either save you money, or cost you money.

For example, if your credit score is low (under 600), you will have limited loan options available to you, and limited banks or institutions willing to finance you. You may need to search out “high risk” mortgage brokers. These “high risk” brokers also come with higher fees.

Loans from high risk lenders have additional requirements. You may have to provide extra documentation, such as reference letters, canceled checks, additional tax returns, etc. There is no limit as to what a potential lender might require from you, and sometimes this information can be difficult to track down.

The difficulties dont end there, however. Lower credit scores generally mean higher down payments. If you have a lower credit score, it is best to have this money set aside for purchasing a home. If you don’t have this cash available, you may need to seek out other options, such as pulling money out of your 401(k).

According to broker/owner of Century 21 GoldFire, determination will always win out.

“If someone wants it bad enough, there are ways to make it work.” She recommends working on one’s credit (or FICO) score at least 3 months in advance of buying a home. Making on-time payments, and keeping credit balances as low as possible are the best ways to raise a score. This is the time to fix errors on your credit reports. Since that process can take 1-3 months, it is best to start right away.

Century 21’s top realtor states, “I have had people that didn’t realize that they can take a loan out of their 401(k)’s for the purpose of buying a home. I have also had clients who have found they can turn to a relative for a down-payment gift or loan, or even have them co-sign if needed.”

If your score over 650, you are in great shape! You will have more options, and will you qualify for a lower interest rate. This can save you money up front, as well as for the life of the loan.

It definitely pays to have your credit score in the best shape possible for buying a home. However, if you happen to have a lower score, don’t panic! Start your three month repair process, and start talking to lenders. If you want it bad enough, you can make it happen!

Quick Cash Loans

Are you really needing some cash at the moment, and you’ve got to pay the bill or suffer the consequences? I can’t see any other way for someone justifying a payday loan. That’s how it goes sometimes though, and the quick cash loans can give you the funds required to get the job done. You might pay quite a bit of interest on one of these loans, but that’s your choice to make.

Maybe you need to make a trip, move, fix a vehicle, cover your checking account balance or something similar to those things. Remember that there are title loans for quick cash, too. The interest rates for these loans aren’t going to be any better though. Still, they are an option and a different way of handling quick cash loans. Check out the different types of repayment plans when you look at these payday loans.

Quick Cash Loans

Payday loan companies seem to invent all kinds of different repayment schedules for various amounts of money. What repayment schedule would you be comfortable with? Personally, I like the installment payments, but I think they need to take them down a notch. Spread it out even further, allowing people to make more monthly payments, yet they can pay more to pay the loan off faster.

I’m not saying that’s how things should be, but it sounds good to me. The only problem is they would have to charge less interest in my opinion. They aren’t going to want to do that when spreading the loan out further and lowering the payments. So who knows if the payday loan market will change in that direction, but you can be certain that it will change somehow again and again. But it sure seems like people are always going to have options for quick cash payday loans.

Quick Loans

Quick LoansIf you’re trying to find quick cash loans, then there’s a wide variety of lenders available who will be more than happy to suit your needs. However, there’s always a few lenders that are best avoided – and the short term loan market is littered with horror stories in this regard.

To help you find the best lender for your quick cash loan, we have a few tips to share with you – so let’s get started.

Tip 1 – find a transparent lender

When it comes to quick cash loans, it’s vital to find a transparent lender that you can truly trust. This industry is full of predatory lenders and scammers who will make all kinds of promises, but ultimately leave you trapped within a debt cycle that’s impossible to escape.

Ultimately, it’s wise to find a lender who will be up front about the fees and rates you’ll be expected to pay, and a good lender may even be able to bend the rules a little to help you pay the loan back in time. They should look into your entire credit history to examine your financial habits, and even if your credit rating isn’t as strong as you would have liked, they will often find a way to give you the loan that suits your needs.

Tip 2 – do your research

It’s not always easy to find a quality lender, but if you’re willing to do the research, you should be able to find a quality company that won’t take you for a ride. Even if you’re in a hurry to find a cash loan, it’s important to do this research thoroughly – otherwise you may regret your decision later. In general, it’s wise to consult with a few companies and get a few quotes before you settle on any specific loan deal.