Why Should You Check Your Credit Before You Apply for a Loan?

If you’re thinking about buying some land for sale in North Florida – near Lake City or elsewhere – it’s a good idea to check your credit score before you start applying for mortgages.

Here’s why.

Lenders base your interest rates and terms of loans they offer you on your credit score. The higher your score is, the more favorable terms you’re likely to get.

Because your credit score is a “big picture” view of your financial situation, it’s in your best interest to keep tabs on it. And while different credit models return different scores, knowing what lenders see can help you tremendously. If your credit score is too low to qualify for the best rates, for example, you may want to spend some time buffing out the scratches so that when you do apply for a loan, lenders will look at you more favorably.

A Word on Scores

In many cases, lenders consider a score above 700 to be pretty darned good. When it dips into the 600s, though, you could be looking at higher interest rates or other requirements (like a larger down payment). If it’s down below, say, 640, some lenders will start saying no to lending you money at all.

Are You Buying a Home or Land for Sale in Lake City?

If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.

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