Credit History & Mortgages?
My question is,is our past credit record going to impede us in getting a favorable mortgage interest rate?
Answers:
there is no real answer to this question. The good thing as that you have no outstanding debts. So this will make it easier for you to qualify. But the other thing is how long did you have those debts for? The mortgage industry is changing allot right now. And the old saying " Bad credit is better than no credit" is standing very true right now. Most lender want to see that you have established credit for at least the last 2years. Now as far as rates are concerned, there are many factors to determine that. It will depend on what kind of credit score you have, and if you are putting money down, are you a first time buyer and are you verifying your income. I hope this helps
In 7-years of doing auto finance I can honestly say that I have never seen any credit problem that enough money down would not correct.
If you are in a good equity position after making your down payment, you should have no problem getting a good rate.
Your interest rate is by and large dependent upon your credit score- regardless of the rest of your debt. Putting down more towards the purchase will help, but only conforming credit scores will get conforming interest rates. There are many programs that are not credit score dependent, but the rates will be a bit higher than conforming rates- maybe .25-.375% higher. I can help you with a mortgage loan if you need.
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