{"id":330,"date":"2023-12-27T20:04:51","date_gmt":"2023-12-27T20:04:51","guid":{"rendered":"http:\/\/katiecasey.com\/?p=330"},"modified":"2023-12-27T20:10:43","modified_gmt":"2023-12-27T20:10:43","slug":"get-ready-to-buy-a-home-by-improving-your-credit-score","status":"publish","type":"post","link":"http:\/\/katiecasey.com\/?p=330","title":{"rendered":"Get Ready To Buy a Home by Improving Your Credit Score"},"content":{"rendered":"\n
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As the new year approaches, the idea of buying a home<\/a> might be on your mind. It\u2019s an exciting goal to set, and it’s never too early to start laying the groundwork. One crucial step to prepare for homeownership<\/a> is building a solid credit score.<\/p>\n\n\n\n

Lenders review your credit to assess your ability to make payments on time, pay back debts, and more. It\u2019s also a factor that helps determine your mortgage rate. An article from CNBC<\/em> explains<\/a>:<\/p>\n\n\n\n

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\u201cWhen it comes to mortgages, a higher credit score can save you thousands of dollars in the long run. This is because <\/em>your credit score directly impacts your mortgage rate<\/em><\/strong>, <\/em>which determines the amount of interest you\u2019ll pay over the life of the loan.\u201d<\/em><\/strong><\/p>\n<\/blockquote>\n\n\n\n

This means your credit score may feel even more important to your homebuying plans right now since mortgage rates<\/a> are a key factor in affordability<\/a>, especially today.<\/p>\n\n\n\n

According to the Federal Reserve Bank of New York<\/em>, the median credit score in the U.S. for those taking out a mortgage is 770<\/a>. But that doesn\u2019t mean your credit score has to be perfect. An article from Business Insider<\/em> explains<\/a> generally how your FICO score range can make an impact:<\/p>\n\n\n\n

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\u201c. . . you don\u2019t need a perfect credit score to buy a house. . . . <\/em>Aiming to get your credit score in the \u2018Good\u2019 range (670 to 739) would be a great start towards qualifying for a mortgage.<\/em><\/strong> But if you\u2019re wanting to qualify for the lowest rates, try to get your score within the \u2018Very Good\u2019 range (740 to 799).\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

Working with a trusted lender is the best way to get more information on how your credit score could factor into your home loan and the mortgage rate. As FICO <\/em>says<\/a>:<\/p>\n\n\n\n

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\u201cWhile many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single \u201ccutoff score\u201d used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

If you\u2019re looking for ways to improve your score, Experian<\/em> highlights<\/a> some things you may want to focus on:<\/p>\n\n\n\n