Burlingame REALTOR Say an Individual?s Creditworthiness is Similar to the Nation?s

By editor • November 6, 2011 • Filed in: Buyer Agent

Burlingame REALTOR Say an Individual’s Creditworthiness is Similar to the Nation’s

“Personal debt can affect your ability to borrow!”

Burlingame, CA (PRWEB) August 01, 2011

Securing credit is an important element in economics and affects the economy, including home buying. Burlingame REALTOR Mary Ann Teixeira says disagreements in congress delaying increasing the debt ceiling should make homeowners and prospective home buyers re-evaluate their own credit situations.

Currently The U.S. Treasury is experiencing a precarious future. Crucial conversations are going on over whether the US Debt ceiling of $ 14.3 trillion will be raised by the deadline of August 2, 2011. According to a recent New York Times article, should the debt limit not be raised in time, the United States may miss a payment of interest on outstanding bonds and notes.

The net result could mean a downgrade to the US’s sterling AAA credit rating. This would be the first ever-default on the government debt. A downgrade would mean the Treasury would likely have to pay higher interest rates to borrow, which would have large ramifications on what the country is able to borrow, purchase, and fund in the future.

“Just as the U.S. debt ceiling causing a default and lowering the country’s credit rating has major impacts on the country’s ability to borrow, purchase, and fund—so does the credit rating of any homeowner,” said Burlingame realtor Mary Ann Teixeira. “The banks look at all aspects of a person’s financial situation to find out just how risky loaning money to them may be. We never know where our personal debt ceiling may be, but it has just as much impact on our individual lives as the nation’s debt ceiling does on the country’s!”

Credit rating and the cost of securing a loan for a potential home buyer is an important element of the home-buying process. For a buyer, the credit report influences not only the cost of the loan, but in some cases whether it is possible to secure a loan at all. There is a minimum credit score level needed to acquire a loan, regardless of income and assets. Unless a buyer’s credit rating is top rated, the cost of a loan will be higher to the borrower.

Of course this all varies by lender, but for some lenders the difference between the top tier and bottom tier rates can differ as much as a point or more. This could mean a few hundred dollars a month difference, and over the life of a 30 year loan, this could exceed of $ 100,000.

For additional information about financial implications of credit on homebuying, reasons to use a Bay Area real estate agent or San Francisco Bay Area Peninsula real estate and relocation, call Mary Ann Teixeira at (650) 241-0318, or visit her website at http://www.maryannt.com.

About Mary Ann Teixeira

Mary Ann Teixeira is a licensed Bay Area REALTOR with McGuire Real Estate in Burlingame, California who specializes in relocation services, homes for sale, and luxury homes. She is a seasoned buyer’s agent who serves the San Francisco Bay Area Peninsula communities of Atherton, Burlingame, Cupertino, Hillsborough, Los Altos, Los Altos Hills, Los Gatos, Menlo Park, Mountain View, Palo Alto, Portola Valley, Redwood City, San Carlos, San Jose, San Mateo, Santa Clara, and Woodside.

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