Credit for Buying
Real Estate Not the Same as Credit
for Buying Cars
Copyright © 2005 Jeanette Joy Fisher
Real
Estate Credit Help Center
http://www.recredithelp.com
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Forget what you've been told about credit. Qualifying for
a real estate purchase requires different credit than
automobile financing or retail
credit.
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Common Credit Myths
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Bill Consolidation Debt 1. You need to pay off your credit cards
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Consolidation Debt Quote 2. You need to close credit accounts
- Revolving (credit cards and store cards)
- Installment (fixed payment loans, like personal or auto loans)
- Real Estate (mortgages)
- Total Debt
Consolidation Debt Lead 3. You need perfect or good credit to buy a
house
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Credit Facts
Consolidation Debt Loan Online 1. Paying off your credit cards lowers your credit
score
Consolidation Debt Home Loan 2. Closing credit accounts lowers your credit
score
Christian Consolidation Debt 3. You don't need perfect credit to buy real
estate
Consolidation Debt Information Why not pay off credit cards? Because paid-off credit
cards
do not compute in your credit score. Real estate lenders
like
to see open, active accounts with low balances.
Agency Consolidation Debt Why not close accounts? Closing accounts before the payoff
often costs consumers more money because credit card
companies raise interest on closed accounts.
Consolidation Debt Solution You can buy real estate with poor credit, but you will
save
thousands in loan costs if you maintain good credit. A bad
credit report leaves home buyers with non-prime loans which
have higher point charges, prepayment penalties, and higher
interest charges, which therefore cost more money. For
instance, a mortgage loan of $150,000, 30-year, fixed-rate
mortgage, interest rate of about 5.72 percent costs around
$870 a month; poor credit scores raise the interest rate
over
9 percent and the payments over $1,200.
California Consolidation Debt As you see from these payment differences, good credit
means
that you can finance a more expensive house with the same
income, or save $330 each month.
Consolidation Debt Loan Uk Credit Requirements for Mortgages
Consolidation Debt Equity Home Credit needed to buy real estate is not the same as good
credit. Besides your credit score, mortgage lenders consider
your debt-to-income ratio and other credit matters, unlike
other credit grantors. Your debt-to-income ratio is the
comparison of mortgage payment, including taxes, interest,
and insurance to your total gross monthly income. Real
estate
lenders also consider your employment qualifications and
your
overall debt ratios.
Consolidation Debt Government Understanding the difference between good credit and the
credit needed to obtain real estate financing helps you buy
houses!
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Copyright (c) 2005 Jeanette J. Fisher. All rights reserved.
Consolidation Debt Financing Professor Jeanette Fisher, author of Credit Help! Get the
Credit You Need to Buy Real Estate, Doghouse to Dollhouse
for
Dollars and other books, teaches Real Estate Investing and
Design Psychology. For more credit articles, tips, reports,
and newsletters, see http://www.recredithelp.com
Consolidation Consumer Credit Professor Jeanette Fisher, author of Credit Help! Get the
Credit You Need to Buy Real Estate, Doghouse to Dollhouse
for
Dollars and other books, teaches Real Estate Investing and
Design Psychology. For more credit articles, tips, reports,
and newsletters, see http://www.recredithelp.com
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Contact him at http://www.recredithelp.com
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