If you’re looking into buying a home in the coming months, you’re likely doing all the research you can now. Maybe you’ve started to clean up your current home, you’ve started saving for a down payment, and you regularly browse available listings on realtor.com. However, do you know how your credit score effects your home loan eligibility? To make sure your credit score doesn’t stand in the way of your dream home, our team at GVC Mortgage recommends you learn all you can about it now.
A credit score is based off your individual credit report and represents your overall credit history and trustworthiness with past lenders. Your credit score is a numerical value between 300 and 900, and experts agree that most home buyers fall in the 600-700 range. The higher your credit score, the more likely you are to qualify for a home loan.
Your credit score is what mortgage lenders use to determine if you will pay them back on time. Both your credit report and your score can greatly impact whether or not you will qualify for a home loan. Unfortunately, even if you say you’re a trustworthy person, a mortgage lender will need proof to lend to you. They will also use your credit score to calculate your loan amount and rate.
While our professionals are happy to assist you in anyway we can, we do recommend you check out your credit score before you begin the home buying process. You can find them from the top three credit reporting agencies: Equifax, Experian, and TransUnion. After determining your credit report and score, take the time to look through it thoroughly and dispute any errors, since it can take some time to clean up your credit score.
If you have any additional questions about credit scores, home loans, or any part of the home buying process, contact GVC Mortgage in Indianapolis at (317) 564-4906. Our mortgage professionals will be glad to help you reach your home buying goals.
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