How getting the first mortgage affecting the credit score?
Written By: aaren on November 29, 2009
3 Comments
I am a first time home buyer and just locked my interest rate. I am paying 20% down and my current credit score is 780. I wonder how much and which way it is going to change after my closing. Is it going to go down significantly? I have no other debts such as credit card, car or college loans etc.
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Tags: college loans, credit card, Credit Score, debts, first time home, first time home buyer, interest rate, time home buyer
Your score will certainly be impacted at first. But it isn’t something you should worry about at all. Firstly, you’ve achieved the largest thing that you can ever achieve with a excellent credit-score…a loan on a home. Second, you’re score may drop 30-40 points at first but after a year of on time payments it’ll jump dramatically. Thirdly, there is nothing that will require a credit score that high, (except perhaps another mortgage) and if there is something else you’re trying to get you can now use your home as collateral (seeing as you have 20% equity.)
You can find the answer to this at http://www.freearticlesdb.com/finance/mortgage-debt-advice.html
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – creditreport.imess.net