The bottom line is that credit makes a big difference in affordability.
Today we’re going to talk about credit scores and why they’re so important. With the market being a little crazy right now, your credit score will greatly impact what you can afford. Don’t think that you have to have a perfect credit score, though. A good rating is anywhere from 670 to 739. That will get you a good rate and set you up for success.
To get the best rates out there, your credit score should be 740 or more. I know everyone doesn’t have that, but that’s okay. We just want to make sure that we know where we stand before we look at houses.
These are all conversations that we’ll have throughout the process to make sure that you’re set up for success. We’ll also team you up with a great lender that can give you the proper advice and tools. If you’re right on the cusp of having that good rating, we may have you work on your credit.
“A good rating is anywhere from 670 to 739.”
Remember, all lenders aren’t one size fits all. Different lenders will have different options and availability for your credit score. There are also many different loan types out there that can help you if you have a lower credit score.
Lenders will also look at your payment history, debt-to-income ratio, and credit applications to see what type of debt you have and whether you’ll be able to afford the debt for the home. Another important factor to remember is not opening up new lines of credit. The lender has all of your information, and it’s important not to change it.
If you’re looking to get into a house, I’d love to speak with you. Please feel free to reach out by phone or email if you have any questions.
