Selling your home is a big decision which is why there are a variety of factors that need to be considered before doing so. One of those involves figuring out if and how the sale will impact your credit score since that is crucial to qualifying for things like loans, insurance, and even jobs. Read on to find out more about the advantages and potential drawbacks that selling your home can have on your credit so that you can make an informed decision.
Does Selling My Home Hurt My Credit?
First things first, the act of selling your home will not directly cause you to lose points on your credit. However, having a mortgage and staying up to date on the payments keeps you in the good graces of lenders and credit bureaus. On the other hand, missing a payment or selling before you’re able to pay off the mortgage can have the opposite effect and will stay on your record for up to seven years. The bright side is this can be offset if you’re planning to get a new mortgage for another property that way you’ll continue to benefit from having regular payments on your account history.
Can Selling My Home Have A Positive Impact On My Credit?
The biggest advantage that selling your home can have on your credit is the money you gain as a result. One of the leading causes of bad credit is outstanding debt like maxing out credit cards or not paying off loans for example. So, choosing to take a portion of the profits from the sale and allocating them toward paying off any existing debts that you might have can actually help to raise your credit score.
Now that you’ve sold your home, the next question you might be asking is where will I live now? If you’re not ready to purchase a new home right away or are worried about your credit score, renting an apartment might be the better option. This is because in addition to it being more affordable, some landlords will either not require a credit check at all or will do what’s called a soft inquiry which has no impact on your credit score whereas mortgage applications usually involve a hard inquiry on your credit which can result in a slight drop in your score.
Who Can I Sell My Home To?
Noah Development has an experienced team who can help you sell your home fast for cash. Our process is as simple as setting up a no obligation consultation to visit your home where we’ll make you an offer on the spot, and then we’ll close depending on your schedule! To get started, call us at 631.750.2837.