How Bad Credit Can Limit Your Mortgage Choices—and What You Can Do
Most banks check your credit score before giving you any money. Your past money choices show how you handle bills. The score comes from your track record with past bills. People with high numbers get better deals from banks. Each bank uses its own system to check buyer risk. Poor credit makes finding good home deals much harder. Many home shoppers face higher rates with bad scores. Your monthly cost goes up when rates rise. The down payment often needs to be much higher. Banks might ask for extra proof of steady income. Risk plays a huge role in all lending choices. Most banks worry about loans not being paid back. Your past money issues make them quite nervous. The bank must protect its money from possible loss. They use past data to guess about future payments. Improve Your Mortgage Chances You should check your full credit report for errors. Paying bills on time helps scores rise quickly. Small debts should be paid off when possible. Your card usage should stay under t...