I was pre-approved for my first mortgage last week at 6.0% ($470k but I am only taking $290k), had an offer accepted on a house and hope to sign the P&S this weekend after the home inspection. My scores were in the low 500's about 2 years ago when I started working on rebuilding my credit and just had a middle score of about 670. This board deserves a lot of credit for some of the info i have received and used successfully! I'm keeping my fingers crossed that there are no glitches before closing. My question is, what affect will a mortgage have on my credit scores? Will they go up or down, by about how much and how quickly? Thanks!
I have seen it hit your score in the first 30 days (due to the new debt)...but, overall a mortgage is a good thing as far as credit scores go. How much can depend on many factors. OVERALL POSITIVE. Mortgage lates-BAD!!
It's an installment loan so very good if paid on time....my mortgage didn't start reporting until about 6 months later, but it showed from the start date, I asked this same question when I bought my home and apparently back then people gave me the same response, they don't report right away but it is good.........
Yes and no matter what ALWAYS pay your mortgage on time!!! Cuz if you get behind in your other bills and need to refi (consolidate debt) there are many lenders that will allow consumer lates (credit cards) but can't have mortgage lates (for the best rate, but usually can have 1). Same with your rent if you are buying your first home. Installment payments are good for your score. ie: Car loan, but not a lease.
