How Does Your Credit Score Affect Your Ability to Buy a Home?

The Robin Group Real Estate Podcast

How does your credit impact your ability to buy a home? Today we’ll talk about how you can improve your score if you want to buy a home.

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Today, I wanted to talk about credit scores and how they affect the home buying process. You may want to improve your credit in order to buy, but that’s not the only thing you should focus on. Every part of the situation should be looked at differently.
We always coach our buyers to speak with their lender about a home loan, even if they don’t plan on buying for another six months or longer. They can help you understand how worthy your credit is of buying a house. For example, you might be better off paying any credit you have in collections, focusing money on paying down outstanding credit card balances, or getting that AT&T bill from college that you forgot about taken care of.
So how does credit impact your home buying ability?

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There is good, average, an excellent credit if you want to buy a home.

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Our friends at GMFS Lending tell us that there is good, average, and excellent credit if you want to buy a home; the difference between them determines how good your interest rate will be. If you can raise your score from 680 to 720, for example, we can save you lots of money in the long run through a better interest rate.
No matter your circumstances, it’s important to know that every person’s situation is different and that your credit score isn’t the only thing that impacts your ability to buy a home.
If you’d like some more information about how to get into a home this year, we’d be happy to help you out. Just give us a call or send us an email today.