First Time Home Buyer – Raising Credit Score
As a first time home buyer, it is important to be aware of the impact your credit score can have on the options available to you when it comes to your mortgage. Your credit score influences not only the types of mortgage you may qualify for, but the interest rates as well.
As a trusted mortgage professional, I strive to provide my clients with the knowledge they need to succeed with their financial goals, especially the goal of affordable home ownership.
Do you know what your credit score is? Are you aware as to whether your credit score is good or bad? Do you know where your credit score comes from or how you can improve it?
Your credit score is number that is calculated based primarily on your payment history, your current debt, the length of your credit history and your current credit accounts. You can find out your credit score yourself through a number of online resources, or you can contact a trusted mortgage professional to go over your credit score with you. They will be able to explain your score to you and how it compares to what you would need to be approved for your mortgage.
If you need to work on improving your credit before submitting a mortgage application, there are a few simple steps you can take to help you get your credit where you want it to be:
- Always pay your bills on time. If you have the money, pay more than your minimum payment to get the debts paid off as soon as possible.
- Don’t overspend. Closely monitor your spending and avoid carrying balances that are close to your limit. The lower your balances, the better.
- Only open new accounts when you need to. Keep unused accounts open longer to continue building your history on those accounts.
If you would like more information about how your credit could be effecting what mortgage options are available to you, or if you are ready to apply for your home financing today, give me a call! I am always happy to help explain the process or to get it started.