Get Your Credit Score on the Track
to Homeownership
Homeownership is a pivotal point in most people's lives. Buying a house is a big investment and takes a lot of time, thought, and preparation. A huge factor in whether someone will be able to buy a home is their credit score, also known as creditworthiness. Nowadays, if a person doesn't have a credit score of at least 620, the banks will not touch them.
In order to be prepared for the steps to become a homeowner, be knowledgeable of your credit rating so you can make improvements before you start the home search.
Some things that affect your credit score:
1. Bankruptcy
2. Late or missed payments- this is an indicator to lenders of how responsible you are with paying your bills. Get them paid on time!!!
3. Overusage of available credit- try keeping your balance (credit cards & consumer loans) 50% below the available credit line.
4. Periods of unemployment
5. Length of time you've been building credit- the longer you've been using credit, the higher your score will be
There are other factors that might affect your credit score but if you can pay attention to these points, and avoid some of these mistakes, you'll be on track to homeownership before you know it!
For more information about Credit Scores, contact Vanna, your Anchorage Real Estate Specialist, 907-720-4663 www.HomesByVanna.com
Vanna, don't forget that the higher your score the better the terms for your loan will be...
Gerry,
very good point. A higher credit score can mean better terms, i.e, lower interest rates!!!