Should You Wait
If this were the ideal world, first time home buyers would have the kind of credit reports that lenders love to see.
However, this isn’t an ideal world and not everyone who wants to purchase a home is going to have that high credit score that lenders want from prospective home buyers.
This is when they come across a first time home buyer with bad credit.
First Time Home Buyer: Taking Care Of Your Credit Report
Are you a first time home buyer with bad credit? Then you should know that you can still get that home loan even with your less than perfect score. However, it would be in your best interest to take the time to and fix your credit before you apply for that home mortgage.
If you take six months to repair your credit and rebuild your score, it’ll give you some long-term benefits. What kinds of benefits will you get? If you’re approved for a home loan, then you’ll save thousands of dollars over the loan’s life. This means you’ll be able afford more of a house when you’re ready to make an offer.
For example: Two different credit scores to consider when looking at a home loan… each asking loan is $150,000. With a good credit score, you get an interest rate of six percent, making the monthly payment of almost $900.
Over 30 years, you pay $173,757.28 in interest. With a bad credit score, your interest rate will be around eight percent, making the monthly payments around $1,100 and in the 30 years you pay, you’ll pay around $246,232.87 in interest.
As you see, you can save nearly $200 a month and $72,000 over the loan’s life… all because of your good credit.
You can see that as a first time home buyer with bad credit you should wait the six months while you get your credit report affairs in order. You can also get a credit repair kit for the mere price of shipping. It’s a value of $245 and you only need to pay $1.97 for the shipping.
Become expert are getting your credit score raised so that you can get the perfect interest rate number for your new home. The credit repair kit can help you.
Sure, you can apply for a mortgage having bad credit and being a first time home buyer, but it is far better to apply for one with a better credit score.
