How To Buy A Home In Maine
...Everything You'll Need To Know
Credit Score
Know you credit score! Are you interested in buying Maine real estate and are unsure of your credit score? We can help. Credit scores are vital to your financial health. A credit score is a numerical expression based on a statistical analysis of a person's credit files. Each score represents the creditworthiness of that person. Why do your scores matter? Credit scores affect whether you can get credit and what you pay for mortgages. For most kinds of credit scores, higher scores mean you are more likely to be approved and pay a lower interest rate on new credit. Having good credit scores makes your financial dealings a lot easier and can save you money in lower interest rates. That's why they are a vital part of your financial health.
| Consider a couple who is looking to buy their first house. | ||
| Let's say they want
a thirty-year mortgage loan and their FICO credit scores are
720. They could qualify for a mortgage with a low 5.5 percent
interest rate*. But if their scores are 580, they probably would
pay 8.5 percent* or more -- that's at least 3 full percentage
points more in interest. On a $100,000 mortgage loan, that 3
point difference will cost them $2,400 dollars a year, adding
up to $72,000 dollars more over the loan's 30-year lifetime.
Your credit scores do matter. *Interest rates are subject to change. These rates were offered by lenders in 2005. |
||
There are several institutions that offer or require a credit
check when making a loan application. If you need assistance in
this area, PLEASE contact us at 207-784-2525.
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2012 Sue Meservier - HowToBuyaHomeInMaine.com All Rights Reserved.
Meservier & Associates of The Maine Real Estate Network 34 Center St. Auburn, Maine 04210
207-784-2525