Homebuyers have to consider several factors when looking for Chicago real estate. What type of home should we buy? Is it in a safe neighborhood? How close is the community to work? While homebuyers are quick to consider these things, one aspect of the buying process that sometimes gets overlooked is their credit scores. After all, simply getting approved for a mortgage is enough, right? Well, according to a recent post on the FreeScore blog, a low credit score can be quite costly for homebuyers.

In “Know Your 3 Credit Scores and Save Thousands Financing a Home,” the credit experts at FreeScore explain how one bad credit score can cost you thousands of dollars. For example, receiving a six-percent interest rate instead of a five-percent interest rate on a 30-year mortgage can have surprising effects. If you were taking out a mortgage on a $300,000 home, that one-percent increase would actually cost you an additional $71,000 over the life of the loan. If your credit is in really bad shape, imagine the effects of a more significant increase.

How can you make sure your credit scores are in good standing? You can start by pulling your three credit scores and reports from FreeScore.com. You’ll be able to see your credit history and check for any errors or inaccuracies. With this knowledge in hand, a mortgage with a low interest rate is within reach. So remember, check your credit information before searching for Chicago real estate. Your wallet will thank you.

For more Chicago real estate news, visit Chicagoland Real Estate Forum.