The greatest nightmare for many people in the world is the ability to purchase a home. Buying a home mostly proves to be the most expensive venture depending on our prevailing economic status. Since paying a large sum of money in one go for a house is not a very easy thing to do, most aspiring home owners go for the mortgage system of financing to enable them buy their dream homes at a slow pace as they go about other daily routines. Mortgages are payable over a long period of time, taking a home mortgage therefore requires an elaborate and serious analysis into your current as well as future income and expenditure prospects just to be sure that things do not go off-course some where along the way.
Credit card service providers understand the intricate balancing act that revolves around home mortgages and therefore try as much as possible not to leave too much to chance when awarding anyone a home mortgage. It is out of the value of the risk involved that these credit card service providers opt to dig deeper into a client's credit card history before deciding whether hw/she may be a worthy risk to take.
Advantages of credit history mortgage
There can be one very big advantage of credit history mortgage other than the fact that it enable you town a home of your dream. This advantage can only be manifest if your credit rating is good in the perception of the mortgage company. If the mortgage company digs into your credit history and gets a positive feedback, this may impact positively in your mortgage terms and conditions. A person with a high credit score is more likely to get a low interest rate on his/her mortgage as contrasted to a guy with a poor credit score. Given that mortgages are financed over along period of time and the amounts involved may as well be much, a difference of even two percentage points on your interest rates on the mortgage would be very instrumental in reducing your total credit debt. It is therefore advisable to try and take full advantage of your credit rating to get the most favorable deal from the mortgage company.
Disadvantages of credit history mortgage
The main disadvantage of credit history mortgage will be quite evident in the situation of a client whose credit score is not quite impressive to the mortgage company. If your score is rated unfavorably, the mortgage company is likely to impose exorbitant interest rates on your mortgage since the risk according to his perception will be too much and he/se may as well try to minimize your payment period out of the fear that if he time limit spreads over a long time ,you may possibly default.