Tips On Improving Your Credit Score

Dated: 11/02/2017

Views: 302

Thinking About Buying? Know Your Credit Score

   First Time Home Buyers, For Buyers, Move-Up Buyers

Knowing your credit score or getting a recent copy of your credit report is one of the first steps that you can take toward knowing how ready you are to start the home buying process.

Make sure all the information listed on your report is accurate and work to correct any mistakes. The higher your credit score, the more likely you will be to receive a better interest rate for your mortgage, which will translate into more ‘home for your money.’

Many potential buyers believe that they need a 750 FICO® Score or higher to be able to purchase a home. The truth is that according to Ellie Mae’s Origination Report, over 53% of loans were approved with a FICO® score under 750 last month!

Here are some tips for improving your credit score:

  • Make payments, including rent, credit cards, and car loans, on time.

  • Keep your spending to no more than 30% of your limit on credit cards.

  • Pay down high-balance credit cards to lower balances, and consider balance transfers to free up credit.

  • Check for errors on your credit report and work toward fixing them.

  • Shop for mortgage rates within a 30-day period — too many spread-out inquiries can lower your score.

  • Work with a credit counselor or a lender to improve your score.

Once you know your score, your next step will be finding a lender and getting pre-approved for a mortgage. Doing this will ensure that you know your budget before you start looking for your dream home.

Blog author image

Shannon Pyatt

Welcome to LKN Dream Homes Inc. We are a team of agents with over 50 years of experience combined, Shannon our team leader/CEO has been in the real estate business for over 14 years, he has sold hun....

Latest Blog Posts

Three Reasons Why Fall Leaves Bring SOLD Signs

You’ve been thinking of selling your home, but now that summer has come to an end, you feel like you’ve lost your best opportunity and just need to wait until next year. Well…You

Read More

5 Steps to Maximize Your Home Appraisal

If you’re looking to refinance your home or possibly sell, you’ll need a killer appraisal. A bank will not refinance a home for more than it is worth, and a potential buyer will not pay

Read More

Creating A Luxurious Master Bedroom

For most of us, our bedroom is little more than a place to sleep and relax. However, just because it’s always been that way doesn’t mean that we have to settle for drab and dreary. 

Read More