How Credit Scores Affect Home Buying

If you plan to finance a home purchase, there are three main quantitative measures that lenders use to evaluate you:

(1) your income versus monthly costs of the home
(2) your mortgage balance versus the value of the home
(3) your credit score

Your credit score is the one area you have the most direct control over. A good score means lower rates when you borrow money, which translates into lower monthly costs and increased buying power.

Does a low credit score mean you can't or shouldn't buy a home? Absolutely not. Usually, a couple of small touch-ups can improve your credit score significantly. If you already have a good score and want to keep it that way, the same techniques that apply to improving credit scores also apply to you.

Visit the link below to see our credit-scoring manual featuring a complete, easy-to-understand overview of how credit scores work and what you can do to attain and/or keep high credit scores.

Please always consult us on the best ways to improve your credit score before going directly to the credit bureaus. We can implement credit changes much faster than credit bureaus.

Credit Scoring Manual

This detailed guide explains how credit scores work and how to optimize your credit for a home purchase.