Finding your credit rating can be an intimidating task, but for anyone hoping to purchase a home it is a necessary step. Your credit rating has a huge effect on the process of purchasing a home, from the types of lenders you will approach, to the type of loan you will get, to the interest rate you will be offered. So how can you find your credit rating, and how do you evaluate it? Finding Your Credit Score There are three major credit companies in the United States that offer you free access to your credit score—Experian, TransUnion, and Equifax. These companies can give you a detailed breakdown of your credit situation; however, don’t assume that each report will be identical. Since these reports are free, it is in your best interest to get all three to be sure that you are getting the complete picture. Understanding Your Credit Score When obtaining your credit report be sure that you request a consumer report. These reports are simplified and designed for the average consumer, and are less confusing than the reports which are sent to lenders. Your credit report will likely contain four sections, including personal information, credit history, public records, […]
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You have probably heard a lot about home equity loans if you have spent any time at all looking at home financing options.  These are loans that are usually taken out by people who already own a home and want to borrow against the value of the home.  Not everyone can get a home equity loan-of course, you must actually have equity in the home, as well as the right credit situation.  Home equity loans are a great way to finance major renovations on your house. What Is Equity? It’s a term that is heard a lot, but for those new to the housing market, it might not be one you exactly understand.  It’s quite simple, really.  The equity in your home is the difference between what you currently owe on it and the current market value of the home.  You can achieve equity in your home in two main ways.  The first is by paying down your mortgage.  The second is by increasing the value of your home, either through renovations you have done or a general increase in the market. Loans Vs. Lines of Credit Along with home equity loans, you have probably heard about home equity lines […]
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