Your Credit Score: The Number That Can Help Open the Door to Homeownership_Continued
That is why I tell buyers: Don't wait until you find the house to start preparing for the mortgage. Your preparation can begin months before you ever walk into an open house. Credit Doesn't Have to Be Perfect! One of the biggest mistakes buyers make is assuming.
Mistakes can happen!
And you don't want to discover one while you're trying to close on your dream home. Here's a Simple Homebuyer Example
Meet Chris. Chris wants to buy a home next year. Chris has: Three credit cards Card #1: $5,000 limit with a $4,500 balance Card #2: $4,000 limit with a $3,600 balance Card #3: $3,000 limit with a $2,700 balance
Chris pays the bills, but the cards are nearly maxed out. Instead of immediately applying for more credit, Chris speaks with a mortgage professional and develops a plan. Over time, Chris works on reducing those balances and continues making payments on time. The result? Chris may be able to enter the mortgage process from a stronger financial position.
That is why I tell buyers: Don't wait until you find the house to start preparing for the mortgage. Your preparation can begin months before you ever walk into an open house. Credit Doesn't Have to Be Perfect!
One of the biggest mistakes buyers make is assuming: “My credit isn't perfect, so I can't buy a house.” Don't make that decision by yourself. Different mortgage programs have different credit requirements, and qualification involves more than just one number. Income matters, Debt matters, Assets matter, Down payment matters, The property matters and yes, credit matters. But your credit score is one piece of the entire picture. Before you spend six months guessing, let's look at the numbers. You might be closer than you think. Or we may identify a few areas to work on before you begin shopping. Either way, information gives you a plan.
Thinking About Buying a Home?
Before you start shopping, let's review:
Your credit, Your income, Your debts, Your estimated payment, Your down payment and your homebuying timeline. Then we can create a plan around your situation, instead of relying on internet guesses.
Don't let a credit-score app decide whether you can buy a home. Let's run the numbers. Call or text me at 774-297-8312.
Credit scores, mortgage eligibility, loan terms and interest rates vary based on the borrower, credit-scoring model, loan program and other underwriting requirements. Improving a credit profile does not guarantee mortgage approval or specific loan terms. Information provided is for educational purposes only
Frequently asked questions
- Do I need an 800 credit score to buy a house?
- No. An 800 score may look great on the refrigerator, but it is not the universal requirement for buying a home. Different mortgage programs have different requirements. Let’s review your full financial picture before deciding whether you're ready.
- Should I pay off every credit card before applying?
- Not automatically. Reducing high revolving balances may help, but don't empty your bank account without first discussing your mortgage strategy. We want stronger credit AND enough money to buy the house.
- The furniture store offered me 15% off if I open a card. Should I?
- If you're getting ready to buy a house, call me before saying yes. Saving $300 on furniture isn't quite as exciting if the new account changes your mortgage qualification. The couch can wait. The mortgage comes first.
- My credit isn't great. Should I wait before calling a lender?
- No! Call earlier. You don't need to be mortgage-ready before talking to a mortgage professional. That's like saying: “I need to get in shape before I'm allowed to talk to a trainer.” Let's see where you are first. If you're ready, great. If you're not, we can identify the steps that may help get you there. Don't let a credit-score app decide whether you can buy a home. Let's run the numbers. Call or text me at 774-297-8312!
This article is for informational purposes and is not an offer to lend or a commitment to make a loan. All loans subject to underwriting approval, program guidelines, and appraisal. Equal Housing Opportunity.