Ignite FB Tracking PixelCan You Buy A Home With Bad Credit? - Cecile Raoult
Daniel Gale Associates Inc
Cecile Raoult, Daniel Gale Associates Inc
Email: [email protected]
Can You Buy A Home With Bad Credit?

by Cecile Raoult 02/17/2019

If you are thinking of buying a home in the near future, there’s one three-digit number that could be oh so important to you. That number is your credit score. Read on to find out how a credit score can affect you and the steps you can take to be sure that your credit is in good standing when you head to apply for a mortgage. 


What Is A Credit Score?


Your credit score is checked by lenders of all kinds. Every time you apply for a loan or a credit card, there’s a good chance that your credit score is being pulled to see if you qualify for the loan. Your credit score is calculated based on the information on your credit report. This information includes:


Payment history

Debt-to-credit ratio

Length of credit history

New credit accounts opened


The areas with the most impact on your score is your payment history and your debt-to-credit ratio. This means that on-time payments are super important. You also don’t want to get anywhere close to maxing out your credit cards or loan amounts to keep your score up. 


What’s A Good Score?


If you’re aiming for the perfect credit score, it’s 850. Most consumers won’t reach that state of perfection. That’s, OK because you don’t have to be perfect to buy a house. If your score is 740 and above, know that you’re in great shape to get a mortgage. Even if your score is below 740 but around 700 or above, you’ll be able to get a good interest rate on your mortgage. Most lenders typically look for a score of 620 and above. Keep in mind that the higher your credit score the better your interest rate will be.    



What If You Lack Credit History?


Most people should get a credit card around age 20 in order to begin building credit. You can still qualify for a mortgage without a credit history, but it will be considerably harder. Lenders may look at things like your rent payments or car payments. Lenders want to know that you’re a responsible person to lend to. 


What If Your Score Needs Help?


It doesn’t mean you’re a hopeless case if you lack good credit. Everything from errors on your credit report to missed payments can be fixed. The most important thing that you can do if you’re buying a home in the near future is to be mindful of your credit. Keep an eye on your credit report and continue to make timely payments. With a bit of focus, you’ll be well on your way to securing a mortgage for the home of your dreams.        



About the Author

Author
Cecile Raoult
Cecile is a luxury client specialist. With almost 20 years of experience working with high-end clients in the hotel and resort industry, Cecile has served as a liaison to VIP clients including high level United Nations' dignitaries and the Secret Service. “I’ve worked closely with a wide range of VIPs from New York to Monte Carlo and I understand their need for flawless planning and execution as well as discretion.” Born in Manosque, France, Cecile is a native French speaker who enjoys traveling. Cecile is also passionate about interior decorating and can assist clients in getting that luxury “boutique-hotel look” in their homes before selling. Prior to real estate, Cecile worked for major luxury hotels and resorts including The New York Palace Hotel, and Mandalay Bay. Cecile has an Associates Degree in Sales and Marketing from Lycee Felix Esclangon in Manosque, France. A graduate of the Windows on the World Complete Wine Course, Cecile appreciates fine wines and food. When she’s not preparing lovely meals for her family, Cecile enjoys outings with her friends in Garden City where she has resided for the past 8 years.