If you’re thinking about buying a home, let’s talk about something that can feel overwhelming but is actually super manageable: your credit score. I know credit scores can seem intimidating. The truth is you do not need a perfect credit score in order to buy a home that’s actually a myth.
Hi, I’m Terry Tucker with eXp Realty and let’s dig into credit scores!
According to Fannie Mae, only 32% of potential buyers really know what lenders are looking for in terms of credit scores. That means the majority of people overestimate the minimum credit score needed to purchase a home. Let’s go ahead and break this down.
First off, what is a credit score? Simply put, a credit score is a three-digit number that shows how reliable you are at paying back the money you borrow. It’s based on your credit history, like how often you pay bills on time and how much debt you have. Lenders use it to decide if they’ll give you a loan and on what terms. Typically, a higher score means you’re seen as less risky to lenders! So, if you’ve been waiting to buy because you think your score isn’t high enough, here’s the truth: Lenders don’t require perfection. In fact, the minimum credit score required can vary depending on the type of loan you’re applying for. That means even if your credit score isn’t where you want it to be, you might still qualify for a loan! That’s great news!
But, if you want to boost your credit score for better terms, here are three simple steps you can take to improve your credit.
First, pay your bills on time. This one’s huge! Whether it’s your credit card or utilities, paying your bills on time is one of the fastest ways to show lenders you’re responsible.
You also want to pay down outstanding debt. Take a look at your current balances and work on reducing them.
More importantly, hold off on applying for new credit. I know it’s tempting to open a new credit card or two, but trust me, focus on improving the accounts you already have instead. If you’re unsure where you stand, the best thing you can do is talk to a trusted professional to explore your options. If you’re ready to take that next step, I’d love to help guide you through the process. Whether you’re buying your first home or your next home, I’m here to make the journey as smooth and stress-free as possible!
I’m Terry Tucker, a 27-year veteran who never stops learning! Call me today and let’s get you started!
And if you need to sell a home… ask me about my home-selling plans. I took the pain out of negotiating with a Realtor and made it SUPER simple. Really! Choose Silver, Gold, or Platinum – Pick your Plan and Pick your Price. Terms apply. I’m Terry and I sell homes. Let’s get started! Call me today!
