Dreaming of homeownership but not sure where to start? Before you hit the market looking for your home, it is important to be aware of your financial standing. There is much more to homeownership than being able to afford the upfront price of the home. Let’s look at what else goes into homeownership and how to reduce excess costs and fees.
Often, the biggest obstacles to homeownership are the buyer’s credit score and current debt. These two factors can play a large role in your monthly interest rates and your ability to pay other upfront and ongoing costs. It is important to be in good financial standing before applying for homeownership because this will have the greatest impact on all the costs and fees that come with owning your own home.
Payment history is one of the largest factors that determine your credit score. So missing a due date or payments can have major implications. Make sure you know your due dates and payment cut-off times.
With your First PREMIER® Bank credit card, you can set yourself up for success by building your credit history to help obtain the best loan rates and reduce excess costs. Talk to a financial advisor or housing counselor to see what budget makes the most sense for you financially, while still meeting all your wants and needs.
Cardholders sometimes send goodwill letters asking for the removal of negative (but accurate) information from their credit report. Goodwill letters are often suggested on consumer credit forums as a way for consumers to clean up their credit reports. Although we truly empathize with past hardship situations where past payments were missed or late, we do not remove accurate information from a credit report, either as an act of goodwill or in exchange for payment.
We are bound by the Fair Credit Reporting Act, which requires financial institutions to report accurate data. It is our responsibility to report accurate information to the consumer reporting agencies.
Check out our online guide and learn more about getting on the right path to homeownership.
This information is presented for educational purposes only. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.