By Jesse McCarl
Your credit score and real estate goals may often seem at odds with each other, but these tips will help create a happy union. Here’s everything you need to know about credit score to buy a house!
Are You Ready to Settle Down?
A credit score of less than 640 makes it highly unlikely to obtain a home loan. Above that through about 680, a mortgage is attainable, but will come with considerable fees since the lender is taking a bigger risk with you. The score of 700 is a huge turning point in the way credit scores are approached. There is a huge difference between a score of 698 and 702. That difference could save or cost you thousands of dollars. By 720, you will get a good deal on your loan and have reasonable monthly payments. At 750 or higher, you have access to the best rates on the market!
Set Up for Success
- The higher the credit score, the lower the monthly payments.
- Check for accuracy on your credit report about six months before applying for a lona.
- Pay bills on time. That’s 30% of your credit score!
- Don’t check your own credit more than once a year.
- Avoid credit inquireies from things like other loan applications, switching mobile providers, etc.
- Do your best to eliminate all debt for the sake of your debt to income ratio.
Follow these tips so your credit and real estate can live happily ever after!
Credit Score to Buy a House [Infographic] by HouseHunt