How will homeownership improve my credit? I was just reading a post that stated that homeownership will open doors to get more credit. Will lenders look at me differently? Is it just limited to equity lines of credit? Or is there more to it than that? I cant ask my folks b/c they'll just think I am getting credit crazy (which I am I guess). Please share! roni
Re: How will homeownership hel It would increase your FICO score 15-25 points,depending on how high and how deep it is now. vj
Re: How will homeownership hel Would that include owning a home w/no mortgage on it? I have a small house that has never had a mortgage. Does that count or should I go get a small mortgage.. leave it on for 36 mos and then pay if off. I've really been wondering about this.
Re: How will homeownership hel Owning outright should generate another 10-15 pts.You might look into a mastercard acct tagged to a line of credit on the house,where interest would be lower and maybe some tax deductable.Seems I remember citibank having a product on there website in their home equity lines.
Re: How will homeownership hel Can you eloborate more on the home equity lines of credit and credit accounts? Are you saying the mortgage must age before the increase will happen or does it take 12 months? roni
Re: How will homeownership hel Let's start with a hypothetical 688.Apply for loan drop 5-20 points.In 3-4 mo.when loan shows on cra's,look to see 700.One year out look for 720+.(no lates, 1 extra inquiry) Usually everone does their best to hold up on inquiries until after loan is closed,then make up for lost time because new house needs more things and then end up only@700 after 12 mo.
Roni The only data I know of that says that homeownership is beneficial to your credit rating is incidental. There is a general assumption that when a lender reviews your request for a loan that owning a home makesthe applicant look more like less of a risk. The "credit analyzer" site makes this assumption. Have some fun and plug in some data to see for your self. P.S. - I am not endorsing the "credit analyzer".
Re: How will homeownership hel Home ownership helps in more ways than one. It increases your FICO. It lets lender know you are probably a person with some roots, one that will probably not move around too much. It shows the ability to manage credit. You should get a mortgage to payoff more expensive credit and to take advantage of the deductions for home interest. http://www.creditsense.com
