With Baby Buck quickly growing everyday and interest rates at historic lows, I figured now is the time to jump into home ownership. After months of visiting open houses, we finally found our dream home. It’s been a long process with tons of paper work, but one thing that never bothered me at all was loan shopping.
I’ve been fortunate and diligent about my credit score throughout the years. I carried minimal debt and paid credit card bills in full every month. The one or two times I did miss payment, the credit card companies were understanding and waived my late fee as a courtesy.
However, if your credit score isn’t spotless, make sure to get a credit check so you know what you’re up against. Ignorance is not bliss. Going in blind for big ticket items like a new home or car could cost you tens of thousands of dollars. Do your due diligence and learn ways to improve your score. With improved credit scores, more loan options will be available making your big ticket purchase that much smoother and cost effective. You don’t have to leap at the first option you get and therefore you won’t get price gouged in the process. I always thought loans were pretty much the same with slight variations in interest rates. However, if you have less desirable credit scores, banks will either charge you a hefty premium or deny your loan because you are too risky. Remember sub-prime lending?
Final Thoughts
If you are preparing to get a loan, you owe it yourself to know your credit score. Why be under prepared on the biggest purchases of your life? By being more aware you can properly gauge your expectations and make the best financial decision possible. Back in the day, credit checks cost money. Can you believe it? If you don’t know your credit score, I highly suggest using GoFreeCredit.com to get your free score and even daily monitoring if you so choose to have that additional feature. You can do so by clicking this link or the banner above.
Stay Inspired!
Buck
Congrats on finding a house! I remember buying our first house and all the paperwork that was required. I agree that knowing your score is vital, at the very least knowing one of them. That can really help you know better what you’re in for and help smoothen the process.
Thanks John! The paperwork is a little overwhelming. Everyone really should know their credit score. It might not seem important at the time, but it sure play a major role in loan shopping.
A good credit score provides more choice and a better negotiating position. I refinanced 9-10 years ago with my lender and was able to get a very special deal. I even got them to cut their escrow and other fees. I got a fantastic rate and lowered closing costs.
Terrific KC! I’m sure you’re a great role model for your students. Having a good credit score does pay off.
Thanks a lot for the great tips on Credit health Check a misnomer term in today’s context. People today be it in savings, credit card spends, insurances, housing loans etc need to check out with saving aggregation sites which will display them the best in savings, credit history records, insurance quotes and anything that they can utilize they can make their savings worthwhile. However yes having a good credit history & good insurance premium is like a challenge in itself which needs to inculcate from the customer within.
I completely agree, I was told that I would care more about my credit score than I would my GPA when I got out of college – they were right. Having a good credit score is something everyone should be working towards and protecting. It puts you in a much stronger position when you are going to shop for houses.
What’s a GPA? Just kidding. Working toward a good credit score and protecting it really helps when taking on future loans. Thanks Jon!
Hope you find your dream home at a good price and low rate. We were lucky to have gotten ours before the housing boom. We had a pretty good rate but recently refinanced at an even lower one. Fortunate my wife and I both have built up good credit scores. After a bankruptcy in the 90′s I learned my lesson about keeping good credit.
Sounds like you learned your lesson. Good for you taking advantage of the historically low rates Lee!