Steve Dixon
Heavy debts and a bad credit score trips up many people up when they try to buy a home.
But people shouldn't be ashamed of their mistakes, says Steve Dixon, a credit counselor who will be part of Saturday's free Money Matters Expo at Housatonic Community College.
"Unfortunately, we suffer from a lack of financial education," says Dixon. "When we were young we weren't taught about credit and finances."
A good credit score makes it easier to get a mortgage at a favorable interest rate. But statistically, Latinos are at a disadvantage.
Latino mortgage applicants were denied loans at twice the rate of other applicants in 2013, and in the same year, Latinos accounted for only 7.3% of purchased mortgages, even though they made up 17% of the U.S. population at the time — and our population has grown since then.
And when Latinos do get a mortgage, they're more likely to be more expensive, because of poor credit scores.
Tight lending standards have made it difficult for millions of Americans to buy a home since the Great Recession, especially for Latinos and low-income families with credit scores below 700.
Latino borrowers are less likely to have a credit score and full credit history, making them appear riskier to lenders than they really are.
Tip: Regularly review your credit standing in the years and months leading up to the time when you buy a home. See your credit scores on a free credit report summary on Credit.com.
