That’s right! If you have a history of paying your rent on time, your chances of qualifying for a mortgage and purchasing a home in the Santa Cruz Real Estate Market might just be better the before.
According to an article posted in the New York Times:
“Last year Experian, a leading credit-reporting company added a section to millions of credit reports showing on-time rent payments, and many people had their credit scores increased.”
What does this mean for you? If you are or were a renter you may just got a nice boost to your credit score which could increase your chances of qualifying for a mortgage and be eligible for lower interest rates. This could save you thousands of dollars over the life of your mortgage.
Additionally, if you are one of the many unfortunate Americans who have recently lost their home to a foreclosure or are currently facing foreclosure this is also good news for you. If you are now leasing a home you may be able to rebuild your credit history by being a “very responsible renter”. That means paying your rent on time and not breaking your leases.
If your landlord is participating, your rental contract may show up on your credit report as a debt owed for 12 months. If your landlord is not reporting to Experian your on-time rental payments you can build your own rental history by documenting on-time payments.
Be an informed consumer and watch your credit report. Maintaining a good credit report is a key factor in obtaining lower interest rates on your mortgage, lower insurance rates, and lower rates on consumer loans.
Just a tidbit from the Coastal Bay Team in an effort to assist you on your journey to homeownership in Santa Cruz County.