Because mortgages are usually a lot harder to qualify for, the credit bureaus scoring modules give more points for those who have a mortgage on their credit report. It also means, there will be equity in the property and people will be more solid in making their payments and be more permanent. There are several challenges to remember when you get a new loan,
1 – it’s a new loan, 2 – the loan has no history, 3 – it’s a 100% debt to credit limit ratio, 4 – you have an inquiry. There are also some potential problems that could happen because of getting a mortgage that you will have to weigh as well. 1 – too many inquiries, 2 – too many accounts with balances, 3 – finance company, 4 – debt to credit limit on accounts is too high, etc.
Be sure to not shop with your too many inquiries, don’t use a finance company, and pay down your balance below 80% as soon as possible. This will assure that you keep your credit scores as high as possible saving you a ton of money.
If you would like a Free Credit Analysis just call 801-769-9443 and let’s chat. I’ll answer all the hard questions for you and help you create a path to financial freedom.