Mortgage Basics: How does your credit score impact the home buying experience?


How does your
credit score impact the home-buying experience? A mortgage lender will
primarily consider your income, employment history, current
monthly debts, assets, rental payment history,
the size of the loan, and your down payment
when evaluating their risk in lending money. So while your credit score
isn’t the only factor, it is a significant one. Some mortgage products
have a minimum credit score requirement. So it’s important to
maximize your credit score well in
advance of starting the home-buying process. Credit scores can typically
range from 300 to 850. And any credit score
above 740 is generally considered excellent. Among other things, debts,
such as credit cards as well as auto loans, student
and personal loans, impact your credit score along
with your bill payment history. Consistently paying
your bills on time can help ensure your
credit remains healthy. So it’s important to remember
that if your credit score isn’t where you want it to be, you
can improve it over time. This can help you better compete
in the market for the house you want, make it easier to handle
the upfront costs of buying a home, and help make
home ownership easier to manage in the long run,
as this may provide you with more available
financing options, getting you one step
closer to making that property love your home.

Paul Whisler

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