In a column that appeared in The Ithaca Journal yesterday, Sandra Block discusses the importance of having a strong credit score before borrowing money for a mortgage. Block, who is a financial columnist for USA Today, provides anyone who is currently in the market for a new home with a must-read column.
Per Ms. Block:
Sales of existing homes fell to a four-year low last month, and the supply of homes for sale was up, which is happy news for house hunters. But unless you're sitting on a mountain of cash, you'll need a mortgage, and that's no longer a sure thing. In response to a sharp rise in foreclosures, mortgage lenders have tightened their standards, leading to an increase in rejected applications.
In addition, interest rates have been rising recently, so even if you qualify for a mortgage, you'll probably pay more for it. That means it's more important than ever to make sure your credit score is in good shape. A credit score is a mathematical model that analyzes information in your credit report. Lenders use credit scores to gauge the likelihood that you'll repay your debts. A good credit score can save you thousands of dollars in interest over the life of your loan.
For the best ways to improve your credit score, click here. Also, stroll through several of the previous posts below for more excellent credit-related tips.
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