When individuals start thinking about purchasing a home, there are a lot of different questions that are important to ask oneself. First, you’ll need to figure out how much house you can afford to buy depending on how much you have saved up for a down payment. In addition, you will need to be prequalified for a mortgage to determine what mortgage payment you can afford to make each month. In order to get qualified for a mortgage, lenders will do multiple credit checks on your behalf. It is important that you make sure you have good credit when it comes time to buy a house. It is no surprise that a better credit score typically allows individuals to have a better mortgage rate.
Some of the information that your credit score will give to a lender is regarding how many payments you have missed, whether you have had any foreclosures or bankruptcies, the amount of outstanding debt or balances you have, and more. Individuals who wish to buy a house should have a credit score of at least 620. The lower the credit score an individual has, the greater the risk they pose to the lender.
If you have questions about legalities in the real estate process, contact our firm today.
Joseph Gachko, Esq. is an experienced New Jersey attorney who can assist you in any of your estate or real estate-related legal matters. If you require legal counsel for your real estate matters, please contact The Law Office of Joseph Gachko today to set up a consultation.