When you start thinking of purchasing Dawson Springs real estate, one of the most important factors for getting a low mortgage rate is a good credit score. Your credit score is what lenders will look at to determine whether you are a safe person to lend money to. The credit score reflects your history of paying back debts. This includes car loans, credit cards, student loans, and sometimes even utility bills and rent.
Note that the credit score reflects your history of paying back money or paying bills on time. This means that having a credit card or a car loan and making payments on time will give you a good credit score. Obviously, late payments will lower your score. But not having any credit history at all will also lower your credit score. Long before you start shopping for a Dawson Springs home, you should have a plan to develop a strong credit history.
Potential Dawson Springs Home Owners Should Check Their Credit Report
You are entitled to see your credit report once a year for free. You can request it from any of the major credit bureaus, which are Equifax, Experian, and Trans union. Go over the report carefully to make sure it is accurate. Contact the bureau as soon as you can if there are mistakes or if you suspect someone has stolen your information.
Be careful not to request credit reports too often. Every time you apply for a credit card or other financial product, your credit will be checked. You don’t want to have a bunch of credit cards where you transfer balances back and forth but don’t actually pay them down. There are other times your credit report can be requested. Becoming a member at a country club or changing banks are both times that your credit report may be checked, and it becomes part of the credit report.
Buying Dawson Springs real estate is a huge decision. You want to find the right lender who can work well with your particular situation. Feel free to give our office a call so we can help you on your journey to home ownership.