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

My Home September 27, 2017

 

A mortgage lender will 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 you money.

So while your credit score isn’t the only factor, is a significant one. There may not be a specific minimum credit score requirement for every mortgage product, so it is 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 up-front 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 you love, your home.