How Your Credit Score Affects Your Home Buying

Tips to Raise Your Credit Score

When it comes time to buy a house, your credit score will help to determine your mortgage rates. The better your credit score, the lower mortgage rates you can benefit from. Knowing how to raise your credit score can help to ensure that you are able to move into the home of your dreams, all at the right price.

Your credit score is reported by three different credit reporting agencies, Experian, Equifax, and TransUnion. These agencies will gather various information about your credit history and then will assign you a credit score. Since there are three separate reporting agencies, you will have three scores that are a little different. Most lenders will look at your median credit score, instead of the highest or lowest, but you will still have to provide all three scores when you are applying for a home loan.

If you check your credit and find out that your score is not where you want it to be, there are some steps that you can take to change it. Pay down your debts as soon as you can, even if it means sacrificing your daily latte. These debts can include credit cards, car payments, and student loans. Some debts look worse than others, such as maxed out credit cards, and you should work to pay them off as fast as possible. The sooner you pay down your debts, the higher your credit score will be.

If you do not have any credit when trying to buy a house, it is time to get some. Open a credit card, and use it. Make sure that you do not max it out, since that can be worse than not having any credit.

For all of your real estate needs when looking to buy a house, no matter your credit score, contact professional realtor Cary Amo in Lafayette, California.

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