Your Credit Score and Buying a Mansfield or Arlington Home - by Tom Brewer

Your Credit Score and Buying a Mansfield or Arlington Home

Your credit score will most definitely influence the home you buy in Arlington and Mansfield. Credit score has almost always been a huge factor when it comes to buying a home. Many people spend years building up their credit ratings so they can take advantage of lower interest rates.

Just ask any homeowner what part their credit paid in their home buying decision and you will probably get an idea of how important it is. It is even more important to maintain a good credit score in recent years since lending practices have been more regulated.

Your credit scores will also affect your ability to purchase a vehicle, or at least the interest you will have to pay for it. You credit score can also affect your ability to get certain jobs. So it is easy to see why homebuyers should monitor and maintain their credit scores.

There are also many credit misconceptions out there that buyers should be aware of. Some of the most common of these misconceptions include:

- Checking your credit score lowers your score. This is incorrect. Checking your own credit report is considered a soft inquiry and does not count against your score.

- Age, gender and income level determine your credit score. This is incorrect. These factors are irrelevant. The myth about age may refer to the fact that theoretically, as consumers go through life, they learn to make better financial decisions and are more careful with their spending.

- Shopping around for loans can lower your credit score. This is technically incorrect. Wise consumers do their research before selecting a lender. Having numerous lending agencies check your credit can negatively affect your credit score since these are considered hard inquiries. If you have multiple inquiries being made by the same lender it is not as detrimental.

- Having a lot of credit cards increases your credit score. This is incorrect. Unfortunately, many consumers do not monitor their credit card spending and end up getting new cards to compensate for the debt they accrue on their existing card. Lenders like to see stable credit histories with payments being made on time and moderate spending.

There are numerous local credit counseling resources for prospective Mansfield and Arlington real estate homebuyers to seek advice from. A good Realtor will also be able to make recommendations to homebuyers to help them increase their buying power.