SM: A lot of people in their twenties and early thirties are paying off substantial student loans. Does this affect your ability to qualify for a mortgage?
Hiner: A lender will NEVER say, “You already owe so much money on your student loans that we’re not going to lend to you.” But they will look at whether you’ve been making your payments on time. If you have made all your payments on time, it will improve your credit score.
SM: How does a credit score affect your ability to buy a house?
Hiner: Your credit score is super important. A lot of people don’t realize that it not only affects the interest rate you can get on your mortgage, but it also affects what you’re going to be able to do. Some lenders might say, “Your credit is not good enough to do 100% financing,” or “You just don’t qualify for a loan.” But if you have a really good credit score, a lender will make exceptions for you. To up your credit score, make purchases on your card and pay it off in full every month. Don’t keep a big running balance on your credit cards that you just pay the minimum on.
<< Previous  | Page |
| |
| |
3 | | |
 Next >> |
|
COMMENT ON ARTICLE |
FORWARD |
|
|
POST THIS ARTICLE ON:
|
||
| catherinehirschman | |
|
I recently took the plunge and bought a tiny apartment on the Upper West Side of Manhattan. I started looking a year earlier, but had gotten scared off by the process. A good friend, who is a realtor, really helped me by making me go to the bank and get a sense of the type of mortgage I could afford. Once I knew that, I had a better sense of my price range. I didn't even look at places I could not afford. It was good I had some extra money for the closing costs because last minute the board of the building decided they wanted two years maitenance up front. I made sure to get a building with low maintenance costs so that my monthly mortgage and maintenance payments are very close to what it would have been to rent in the same area. Things came up and after a year I am living in California for at least a year. I rented the apartment for a good price and am making a nice profit. I did not want to wait to buy an apartment with a significant other because I wanted to start building up an investment now instead of wasting money on rent. Maybe one day I will upgrade. I think more women should think about taking the plunge. |
|