Buying a home is a major investment. If you have hefty credit card debt or perhaps no credit at all, you will have even more of a struggle in financing your mortgage for real estate investing. EXIT Realty Upper Midwest has 28 independently owned brokerages serving Iowa, Minnesota, North Dakota, and South Dakota, and their trained professionals have seen how credit issues can affect home purchasing capability.

When you’re applying for a mortgage, you need to understand how the following credit issues can affect the likelihood of being approved:

• Credit Card Debt: Your card balances don’t have to be at zero, but they shouldn’t be so high so as to appear that you can’t pay them off in due time. EXIT Realty Upper Midwest suggests that if you can't pay off your balance in full every month, pay more than just the minimum on your cards because doing so will bring the balance down faster and save you hundreds or even thousands in interest charges.
• Bad Credit: Defaulting on a credit card is bad news, but it’s not completely detrimental, as bad marks on your credit report are removed after a certain number of years. Even if you have had bad credit at one point, it is possible to rebuild your credit score and be eligible for a mortgage.
• No Credit: All is not necessarily lost if you do not have any credit. If you can’t or don’t want to apply for a credit card, you can apply for a government-sponsored mortgage (requires a higher down payment than a regular mortgage) or have a family member cosign the loan with you.

Don’t let credit issues stop you from achieving your dream of owning a home. For more information about mortgages, hiring real estate agents, or even information about careers in real estate, call EXIT Realty Upper Midwest at (612) 414-4022 or visit the website.