Credit scores have long been a mystery to homebuyers, in both how they are determined and how they matter in the long run. Most people think that if you pay your bills on time, you'll have a good score, but our real estate agents can tell you that there is far more to it than that. But while the exact formula used to determine your score is not public knowledge, you still have a great deal of control over it. Here's how you can optimize your credit score and qualify for a mortgage with a good rate.
Our REALTORS® know getting a mortgage on the best terms is something all buyers think about. That's especially true of first-time buyers! When you're exploring the best Richmond homes for sale, sound financing means peace of mind.
Luckily, the mortgage process is a lot easier than it seems at first!
The more you know, the simpler it is to get a mortgage loan you can be happy with. We'd like to address one of the most common questions about home financing our team gets: The difference between pre-qualifying for a loan versus receiving pre-approval.
When it comes to getting a great home loan, starting sooner makes life easier.
Prequalification and preapproval are steps you take to smooth the path to your final loan package. You can think of one of them as the trial run, while the other is the "real deal."
Pre-qualifying can happen in a matter of minutes the first time you talk to your lender. You discuss your finances and get a ballpark estimate for what loan amount you can expect. It's not necessary to document your income, and you're not committing.
So, you're ready to make the leap from renting to owning your own home, but you're worried that your credit score might hold you back. If that's the case, you're far from alone. Our real estate agents get a lot of questions about how prospective homeowners can improve their credit score before buying a house, and we're here to provide some answers.