Owing a home is something that many people work towards. In today’s market, there are many new opportunities for first time home buyers to obtain such goal. First time buyer programs, tax rebates, low prices, good finance rates, and many other factors makes this one of the best times to buy a home. For some people, it’s just a matter of finding their dream house and they will be ready, but for others getting the financing they need to maintain their own will be a challenge that they will have to work hard for.
Getting approved for a home loan is some what difficult today, but not impossible. The problem lies in the rates that they first time home buyer will obtain when getting approve for their first mortgage. A difference of just a few points can make or break a budget and put a dream home out of reach. The rates can fluctuate a point or two based on a the first time home buyer’s credit score. Having a better credit score will mean the difference of thousands over the course of the loan, which means it’s important to get the best mortgage rates with better credit.
Having even slightly better credit score improves a mortgage rate by a percentage of a point which can still make a dream home much more affordable. When a budget is already tight, the differences of a just a hundred dollars can make what seemed like a home that was considerable out of reach.
Improving credit score before applying for the first time home mortgage is always the best course of action, but there are times when families or couples need to buy based on timing in the market. This doesn’t mean that improving credit score is no longer needed. In fact, a first time home buyer can apply to refinance their home loan within a couple of years and with improved credit score the first time home buyer should be able to benefit from a lower payment.
Over the course of a home loan, improving credit score will save thousands of dollars and put more money back into other resourceful things likes savings, 401k, or bonds. There is never a downfall for trying to improve credit score, and first time home buyers will have the most to benefit as they already in a good market to buy home of their dreams.
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Tags: Credit Help, Credit Reports, Credit Scores, FICO, FICO Score, Home Loans, Mortgage, Personal Finance, Real Estate
This entry was posted on Tuesday, January 19th, 2010 at 7:50 am. You can follow any responses to this entry through the Post RSS Feed.
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We’ve had to move furniture out of homes simply because the families got a bad deal on their mortgage. It’s sad how many people were screwed over by subprime mortgages. We advise all our customers to check their mortgage rates, work to improve their credit, and shop mortgage companies to get the best rates possible. Thanks for the tips.
I know a buddy who lost his own home to short sale about 2 years ago, only to rent a house and that house got foreclosed on even though he was paying his rent each month. It’s a shame for him because he has had to move twice in just over a year or so and he never thought he’d have to move again.
We usually do not post on blogs but your Blog made me, great work. simply awesome! The subjects are opposite but your blog & My Free Credit Report blog are both the best I’ve read to date. Keep it up!!
I have found your page on Google and found it interesting. Thanks for the blog entry for first time home buyers. It has really inspired me. I will keep browsing around and see what other useful things you have on here. Thank you again!
Thanks for sharing and we are glad you like the content. We look forward to you visiting again.