Home Buying and Credit Score
When buying a home your credit score is very important. The average person does not think about their credit score too often on an everyday basis. When making a large purchase such as buying a home or a car, your credit score makes the difference in your payments. If you do not know your credit score, it is a good thing to contact one of the major agencies, Equifax, Transunion, or Experian. You are entitled to a free credit report each year, however, if you want more information, you can pay a small fee to get all 3 reports in one. It is a good thing to check throughout the year to keep track of what is on your credit report.
Why is My Credit Score Important?
Your credit score helps the lender determine your ability to pay back the loan. A credit score is based what is reported on your credit report. All three of the major credit reporting agencies show information differently. It is important to see if your credit card company shows that you have paid off your credit card. Also, if you have a car loan that is paid off, you should know if it is accurately reflected on your credit report.
Your credit score is a three digit number between 300 -900 points. The higher your credit score number, the more favorable you are to a mortgage lender. Paying your bills on time and the amount of outstanding debt also plays a critical factor in determining your credit score.
Types of Home Loans and Your Credit Score
Click on the following links to find more on your credit score and buying a home:
- Transunion – Credit Reporting Agency
- Equifax – Credit Reporting Agency
- Experian – Credit Reporting Agency
- What is a Good Credit Score to Buy a House? – Realtor.com