Boston Property Management: Buying a home can hurt your credit
It is great owning your own home as it gives you that feeling of accomplishment. There is no landlord or any rent to pay. Whatever you pay per month, goes towards your home equity. However if you are not careful, you can hurt your credit.
1. Taking too long to shop for a mortgage
One has to look around to find the right mortgage rate before making a decision. This also means that you have to look around quite a bit before you can do something. The only caveat is that Mortgage lenders only give you a 14 to 45 day window to shop for rates. So make as many queries within that period as inquiries outside that window will count as an additional inquiry. It is important to limit your search within that window.
2. Delayed Mortgage payments
If you don’t pay your mortgage bills on time then it will hurt your score. It helps to pay your bills on time and in full. Delayed or deferred mortgage payments will only damage your credit score. You can also end up losing your home if you do not keep up with your payments. So do your homework before you get your home and see if you can afford the payments.
3. Boston Property Management: New Address
If you forget to inform your creditors about your new address, you can end up losing a lot. You can end up missing payments if you don’t get your bills on time. Those who default on payments will end up having to pay with a negative credit score.
4. Dealing with the high cost of moving
Moving to a new house is quite a chore as it requires hard work and money. You also need to pay for the cost of setting up utilities at your new place. Utilities require a credit enquiry and that will have a detrimental effect on your credit score. However it is not so bad as it is a necessity. Just make sure that you do not make too many enquiries.
5. Furnishing your home
Moving from a smaller place to a bigger home can be a challenge. This means that you have to buy new furniture to fill it up. This will be another drain for your finances as you might need to buy it on credit. So just be careful when buying furniture and do not go overboard.
We hope you liked our guide “Boston Property Management: Buying a home can hurt your credit”