Your credit score doesn’t need to be perfect to buy a home, but it sure matters.
First, let’s kill the myth that you need an 800+ score to get a house. You don’t. You can get in the game with a score as low as 580 or even lower with certain FHA loans. But know, just because you can buy with that score doesn’t mean you should. A low credit score can result in higher interest with higher payments. That’s like buying a Lambo and filling it with lawnmower gas. It technically runs, but it’s gonna cost you big time in the long run. But, here’s where you can level up fast to get your score up.
First, pay your bills on time. Credit cards, your phone, Netflix. All of it.
Then slash that debt. Don’t max out the cards. Lenders want to see that you’re using less than 30% of your available credit. Check your credit report, review it, and fix the stuff that doesn’t belong. There could be an error on the report and you do not know it.
Finally, chill on opening any new accounts. Now is not the time to make extravagant purchases that ding your score. Remember, your score doesn’t have to be flawless, but the better it is, the more money you save and the more house you get. I’m Terry Tucker with eXp Realty. Message me and I’ll connect you with a lender who will run through all your numbers to see what youn qualify for.
