Keeping Your Credit Clean Before Purchasing A Home Essay

1114 Words Feb 19th, 2016 null Page
When it comes to your credit and purchasing a home, you must be extremely careful with what you buy and the money you spend. One wrong move and you can wave goodbye to your new home. There are many factors that come into play when it comes to keeping your credit clean before purchasing a home, which you will need to pay serious attention to during this process.

It 's important to keep in mind that after you apply for a loan, or do anything which involves your credit score and report directly, all of the information is then documented into your current credit report. In the case of purchasing a new home through an application for a mortgage, it 's best to wait to take out any credit cards, or apply for a car loan. However, if this is inevitable, ensure that you speak to your loan officer or your mortgage broker for some advice, lest you risk losing your home loan.

Messing With Your Income Ratio

Were you aware of the fact that messing with your income ratio when purchasing a home can bring negativity into the process? If not, then there are things that you will need to know. For example, if you are attempting to take out a home loan, but are also purchasing a new car, your lender will evaluate all of your debt-to-income ratios, and make a decision based on that information.

Your ratio represents the amount you are spending on a monthly basis when it comes to making dept payments. On a typical basis, mortgage lenders generally prefer a ratio to be no higher than 36…

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