The impact of credit record on loan for house purchase

The impact of credit history on home loan Richard Liao Unless you are buying a house with cash, it is important to make preparations for a loan before buying a house...

Richard Liao

Unless you are buying a house with cash, it is important to make preparations for a loan before buying a house. First of all, please investigate your own credit record, because for banks, credit record and score are important basis for measuring personal credit value. Whether the bank is willing to lend to you and whether the interest rate you get is high or low, personal credit record and score play a big factor.

According to the Fair and Accurate Credit Transactions Act, everyone can get their own credit record report for free once a year. This report is provided by three major credit reporting companies: Equifax, Experian and TransUnion. The easiest way is to go online to AnnualCreditReport.com to apply for free. If you want to know your credit score (Credit Score), you need to spend money to purchase it. Currently, there are many agencies on the market that provide integrated inquiry solutions. You only need to spend more than 100 yuan per year to inquire your credit report and score without limit. Please rest assured that inquiry of your own credit record will not affect your credit score. Therefore, in order to understand your credit status and avoid surprises when purchasing a house with a loan, it is recommended that you check your credit record at least every few months, and at the same time, you can avoid becoming a victim of credit theft.

After getting the credit report, please check in detail whether the personal information is correct, such as: name, address, birthday, etc.; whether there are any unknown accounts, such as: credit card accounts, loan accounts, etc. that you do not hold, and whether there are any accounts where you pay on time every period but have a record of late payment. If there are any errors, you have the right to submit proof to them and request corrections. A bad credit report may make your loan interest rate higher than others, or even cause the bank to reject your loan application.