Home Buying Helps Credit Scores

Home Buying Helps Credit ScoreMortgage Payments and Your Credit Score

In today’s day and age, a credit score is one of the most important things you can establish in the financial world. One important factor in determining your credit score can be your mortgage loan. A mortgage loan is most likely the largest debt that people will carry in their life and it will have a big impact on their credit score. If you are able to properly manage and pay your mortgage loan, it can have great effects on your credit score.

Although some consumers may report a small, temporary drop in their credit score shortly after acquiring a mortgage, making the consistent payments in the long run can have a positive effect on your credit. It is important to know the financial risk of having a mortgage payment. Lenders prefer to have a potential borrower with at least $15,000 ready for a down payment, in addition to the ability to handle a mortgage payment in the long run.

Even if you are able to afford a mortgage payment, your credit score is always looking for a boost. Whether it comes from an immediate increase your score or a prolonged, slower growth, a home loan can allow you to have a better credit risk. This can lead to other cost of funds for other forms of credit being lowered, giving you the opportunity to refinance and reduce the interest of your mortgage expense. In addition, this can also remove PMI or at least lower the cost of PMI.

So you can get the knowledge you deserve, contact Avis Lending. We are here to help you be prepared for the lending process. With offices conveniently located in Irvine, California and Lahaina, Hawaii, we are here to serve as your one-stop shop to all of your west coast home loan needs.

 

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