“Why it is so important to know your credit score prior to buying or renting a new home when you get divorced?”
In our society, besides your income, your credit score is the single most important factor in determing whether or not a bank/mortgage company or landlord will approve you, and what rate and terms you will be offered. Before you consider purchasing or renting you mustobtain a copy of your credit report to determine if it is accurate. Then you will know exactly how much outstanding debt you have, so you can accurately determine how much living expense you can afford. Unfortunately, many times in a divorce situation, an ex-spouse may have run up unknown debt or may not have paid bills in a timely manner that you are now your legal responsibility. Avoid temptation to use unsoliciated credit cards that arrive in the mail, do not maximize your credit to its limit, and limit the number of inquires made. All of these factors can negatively affect your score. The more you know about your credit, the more likely you are to make sound decisions and not get yourself into financial trouble.You may need to repair inaccuries or even pay-off debt before applying for a loan, and this sometimes can take months or even involve litigation. Remember, knowledge is power.
Dina Lafferty is a licensed Real Estate Broker in Florida and Massachusetts with Realty Associates Florida Properties. She has more than 20 years’ experience in real estate sales and marketing and specializes in southern Palm Beach and Broward County residential sales and marketing.