Good credit scores give access to more than just today’s lowest mortgage rates — they give access to today’s best loan programs, too.
You need a decent credit score to get approved for the low-downpayment FHA mortgage, and for the No Money Down USDA loan, as examples.
Plus, for borrowers using conventional loans to buy a home, only an “excellent” credit score grants access to the lowest available rates nationwide.
With the Mortgage Bankers Association (MBA) projecting $677 billion in purchase mortgages for 2014, and with more than 5 million homes expected to be sold this year, today’s home buyers can “help themselves” by priming their personal credit scores as much as possible.
Buying a home? Understand how credit scores work, and take steps to improve your personal score. Mortgage lenders use credit scoring systems which range from 300 at the low-end to 850 at the top-end.
Today’s home buyers and refinancing households can get mortgage-approved with credit scores above 500, but having a better credit score often means having access to a lower mortgage rate; to additional loan programs; and, to the right to buy a home with little or nothing down.
Ways To Boost Your Credit Scores:
1). Pay your bills on time, always
2). Keep your credit card balances low as compared to your total available credit
3). Apply for store charge cards only when absolutely necessary
4). Pay doctor and utility bills when they’re due
5). Keep “aged” credit cards open, and use them periodically
