Let’s take a step back and discuss the significance of your credit score and what that means in terms of obtaining a home mortgage.
When you decide to buy a home and approach a lender for a home mortgage, your credit history has a direct impact on the amount you’ll pay for that loan. It’s the most critical factor in the calculation.
How do you improve your credit score?
The best way to improve your credit score is by simply paying your bills on time. Often it’s easier said than done, but very true.
The benefit, of course, is that the better your credit score, the lower the interest rate will be on your home mortgages. It really is a direct correlation.
Changes to the credit score model
As a result of changes to how credit scores are calculated, you could enjoy a higher credit score than you did in the past. According to FICO (Fair-Isaac Corporation), the following changes may help you:
- Medical bills are not being factored in the way they used to be, helping many homeowners when it comes to obtaining home mortgages.
- FICO will not penalize you for previous collections, if you’ve paid them.
Reach out to a trusted, knowledgeable lender such as Golden Oak Lending today to learn more about your credit score, how you may improve it, and what you are eligible for today when it comes to home mortgages and more.