Check out what to know about your credit before looking for homes for sale in Brentwood.
When it comes to buying a home, you first need to qualify for a mortgage loan. However, without a decent credit score, looking for homes for sale in Brentwood, Santa Monica, and throughout the Westside can be near impossible. Check out what you need to know about different types of debt to help give you better insight when it comes to your credit score.
Two Types of Debt:
- When it comes to secured debt, the bank has a means of security against your loan. Should you default on your loan, the bank has the ability to reclaim what you’ve bought with the loan. Therefore, such a loan gives the bank more security.
- When it comes to unsecured debt, the bank has no way of reclaiming its investment.
Student Loans & Payday Loans.
Both student loans and payday loans are considered unsecured debts. However, neither type of loan will have much of an effect on your credit score. As long as you pay your loan on time, you shouldn’t encounter any issues. However, keep in mind that if you default on the loan, then it could leave you in hot water. Ensure that if you take out a loan, you’re able to pay it back in a timely manner.
Auto Loans & Current Mortgage Loans.
Both auto loans and mortgage loans are secured debts. If you pay your loans on time, they can only help you qualify for a mortgage loan. However, keep in mind that if you default on your loan, it doesn’t just harm your credit score, but it can also lead to the bank repossessing your car or home. Be smart when it comes to your loans.
When it comes to your credit, ensure you know what you’re getting into before you start looking for homes for sale in Brentwood, Santa Monica, and the surrounding areas. When thinking of making a move, Sit Down With A Stand Up REALTOR®. Contact The Fealkoff Team for all your real estate needs. We’re helping families in both the Conejo Valley and the Westside of Los Angeles, including Westlake Village, Thousand Oaks, Calabasas, Santa Monica, Brentwood and more.