Credit Score is King
While buyers today are finding they have to actually need to come up with money for down payments costs rather than writing an earnest money check for as little as $100 or $200, the credit score remains king. Without at least a 620, you won’t be buying that house.
Now there may be independently owned banks that will allow for a lower score, but they are few and far between.
What impacts your score?
- Have you paid your bills on time? How many 30 days or later pings are there? Bills will include everything from phone to credit card to electric to student loans.
- How much open credit is available to you? If you have a credit card that has a $0 balance, but a limit of $5000, this could be negative because you have the POTENTIAL to impact your debt to income ratio.
- What is your current outstanding debt?
- What’s your credit history? Has it only been a month or two since you’ve had a credit card?
- How many inquiries have there been in the last 12 months? If there have been a lot of people looking into the score, that’s not good.
There are many other factors to be considered … click here for more details. If you’re financial house isn’t in order, you need to get on it. Work with creditors to make payment plans (and then make the payments!). If your income is less than your expenses, find that extra job if you can. Avoid compulsive spending. Write menus to buy groceries. Don’t buy things without planning ahead to buy them.
Be vigilant.
