Did you know your credit score can affect your home purchase? In Keith Loria’s BHG story recently, he discussed this idea.
As he points out, “having a good credit score can be the difference between obtaining the mortgage you need to buy your dream home—or settling for less because you didn’t qualify for the money you need.”
This is important as many buyers don’t consider their credit score until they’re already involved in the process. At that point, it’s usually too late to fix anything that might be wrong with your score. So think ahead and monitor your credit score!
Don’t like your credit score? Paying off debts is the fastest way to up your score, but if you are in the process of applying for a loan, check with the lender first. Missing deadlines on your credit payments are huge hits to your credit score!
I also spoke with my local lender, Jay Vorhees of JVM Lending, about this, and he gave me a few benefits to having a high credit score :
- Borrowers with higher credit scores usually get lower interest rates (especially when loan-to-value ratios are higher)
- Borrowers are allowed to make smaller down payments, if necessary
- Underwriting requirements become less onerous because there are fewer conditions and requirements
- Second mortgage financing is easier to obtain, if necessary
If you have any questions about credit scores, purchasing a home, or the market in general, please feel free to reach out. I’m happy to help or guide you to the right person!