Buying a Home: Your Credit Score

Buying a Home:  New Financing Guidelines

YOUR CREDIT SCORE

To qualify for a good mortgage rate, your credit score should be above 720.  Mortgages are still attainable if your score is in the mid-500s, but your rate will be considerably higher.  But don’t fret…there are things you can do to improve your credit score! 

Your balances on your credit cards should never be more than 50% of the credit limit on any card.  If so, pay it down, ask the bank to increase your credit limit or spread your balances around to get your balances under 50%.  If possible, try to get your balances around 30% to help improve your credit score.  This important step carries almost the same weight as paying on time and is often the one thing most people overlook.

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