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If you plan on buying a house and need a mortgage, a lender is going to perform a credit check to help determine whether to give you a loan and the interest rate youd have to pay. The higher your credit score, the more likely youll get approved and the lower your interest rate might be.

Shopping around for the best deal can save you thousands of dollars over the life of a mortgage, but its also important to understand how credit checks work and might affect you. According to the Consumer Financial Protection Bureau, here are some main factors to keep in mind:

Inquiries
A credit check is reported to the credit reporting agencies as an “inquiry.” Inquiries tell other creditors that youre thinking of taking on new debt. An inquiry typically has a small, but negative, impact on your credit score that could affect your chances of getting other types of loans. Inquiries are a necessary part of applying for a mortgage, so you can’t avoid them altogether. But it pays to be smart about them.

As a general rule, apply for credit only when you need it. Applying for a credit card, car loan or other type of loan also results in an inquiry that can lower your credit score, so try to avoid applying for these other types of credit right before getting a mortgage or during the mortgage process.

Personal Credit Checks
Because your credit plays a major role in mortgage eligibility and rates, you should make sure your credit is in good standing and the information correct before applying for a loan. Fortunately, doing a credit check on your own does not affect your credit score. You can get a free copy of your credit report at www.annualcreditreport.com. If you find any errors, get them corrected immediately to avoid potential impacts.

Shopping Around
Within a 45-day window, multiple credit checks from mortgage lenders are recorded on your credit report as a single inquiry. This is because other creditors realize youre only going to buy one home. You can shop around and get multiple pre-approvals and official loan estimates. The impact on your credit is the same no matter how many lenders you consult, as long as the last credit check is within 45 days of the first credit check. (Note: The 45-day rule applies only to credit checks from mortgage lenders or brokers”credit card and other inquiries are processed separately.)

Even if a lender needs to check your credit after the 45-day window is over, shopping around is usually still worth it. The impact of an additional inquiry is small, while searching for the best deal can save you a lot of money in the long run.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.

Here are a few of the reasons why more and more luxury homes are being equipped with smart toilets.

Super Sanitary

Todays cutting-edge models boast a self-cleaning functionality, air-purifying systems and automatic flushing.

Personalized Experience

Some high-tech toilets boast adjustable heated seats, foot warmers, ambient colored lighting and even Bluetooth capability.

Built-in Bidets

High-tech toilets often include a remote control to adjust the temperature and spray position of a built-in bidet, as well as a warm air dryer.

Water Efficient

Toilets are the main source of water use in most homes. However, some smart toilets use as little as 0.8 gallons per flush.

Published with permission from RISMedia.

Financial problems can strike at any time. An illness or injury can leave you or your spouse unable to work, or a childs or parents medical issue can require you or your spouse to cut back on work hours, take an extended period of time off, or quit. In such a situation, your family may be unable to cover your mortgage payments. Help is available, and the quicker you ask for it, the better.

Call Your Mortgage Company ASAP
Contact your loan servicer as soon as you realize you wont be able to make a mortgage payment on time. Be prepared to explain your circumstances, including how a family members illness or injury has affected your finances. Let the representative know whether you expect the situation to be temporary, long term or permanent.

Be prepared with figures on your households monthly gross income, mortgage payments (including a second mortgage and/or home equity loan), account balances and minimum payments for credit cards and other loans, savings account balances, and other assets. Providing specific information will allow the representative to give you detailed advice on programs that can help.

Explore a Range of Solutions
If you expect the illness or injury to affect your familys finances temporarily and anticipate that things will get back on track relatively soon, your loan servicer may suggest forbearance. That means your mortgage payments would be reduced or suspended for a period of time, and later youd have to make larger payments to catch up.

A repayment plan is another option to deal with a short-term financial problem. A portion of your missed payments would be added to future mortgage payments until you got caught up.

Your lender may also suggest reinstatement to deal with medical expenses and a temporary reduction in income. That means you and the lender would agree that youd pay the past due amount, plus any fees and penalties, by a specific date.

If you expect that a family members medical condition will permanently affect your finances, you may be able to get a loan modification. That would permanently change the terms of your mortgage, such as by extending the term, lowering the interest rate, adding missed payments to the end of the repayment period, or making another modification. The lender may even be willing to forgive some of your mortgage balance.

Dont Wait to Address the Problem
If an illness or injury in the family has left you unable to afford your mortgage, contact your lender as soon as possible to explain your situation. Many options are available to help people in difficult circumstances, but your lender cant offer you assistance if you dont ask for it. Provide detailed information, explore a variety of options, and keep records of all your communications with your mortgage servicer.

Published with permission from RISMedia.

Published with permission from RISMedia.

Buying a home on two incomes can be difficult enough, but it can be even more demanding if one spouse has poor credit.

A poor credit score can make it difficult to qualify for a mortgage, leading to a higher interest rate on a home loan. A spouse with poor credit could be left off the loan application entirely, requiring the other person to have a high credit score and a high enough income to afford the loan on their own.

If a spouse with poor credit does qualify for a loan, the lender could require a bigger down payment on the house.

FHA loans, for example, which are backed by the federal government, require a 10 percent down payment with a FICO credit score lower than 580, while a credit score above 580 only requires a 3.5 percent down payment.

A credit score is just part of the financial background a lender looks into. Income and a debt-to-income ratio are also considered, though a high income by itself wont overcome a poor credit score.

Credit scores range from 500 to 850. A low score of 650 can be a predictor of making late loan payments, while a 550 score means youre not likely to pay at all.

A couples credit scores arent averaged together in a home loan application. Lenders will use the lower of the two credit scores. If a husband has a 620 score and the wife has 700, then the lower score will be used in the mortgage application and an interest rate of three-eighths to half a point higher will be charged.

Options for Those With Poor Credit

There are ways to get around one spouse having a low credit score. In the above example, the wife with the 700 credit score can get a home loan if she qualifies on her own.

Both spouses should be listed on the homes title or deed, but only she would be listed as the borrower. The husbands name could be added to the deed later when his credit score improves.

Buying a home on one income, however, can be difficult. The best solution is to improve the lower credit score, something that should be done months before applying for a loan.

In fact, a 10-point credit score improvement can be achieved quickly by paying down credit cards, which could be enough to get a better interest rate.

Even minor credit improvements such as closing all but one credit card can take 30 days or more to fix. Most fixes can take three to four months to show up on a credit report, so repairs should be made before applying for a loan.

Published with permission from RISMedia.