It goes without saying that most home buyers rely on a mortgage loan to complete their property purchase. Unless you’re paying all cash, you’re limited by two things: Your income, and your credit score. You may not have much control over how much money you make, but you do have control over your credit score…IF you take the right steps.
Aside from how much money you make (and how much you spend), mortgage lenders use your FICO (Fair Isaac & Company) score to determine your credit worthiness. The higher the score, the more “worthy” you are deemed. Higher credit scores can open up more options for you such as a lower interest rate or better loan terms. Typically, a FICO score of 700 or more is considered a good thing. Anything below alerts lenders to a potential credit risk.
That’s not to say you can’t get a loan if you have a lower credit score, but again, your options may be limited to a higher interest rate or terms not quite as favorable. So what can you do to improve your credit score? Here are the top things you can do to start. Continue reading Top Ways To Improve Your Credit Score