Ignite FB Tracking PixelHow Your Credit Score Affects Your Home Purchase - Bonnee Proo

How Your Credit Score Affects Your Home Purchase

by Bonnee Proo 12/04/2018

If you are thinking of buying a home in the near future, there’s one three-digit number that could be oh so important to you. That number is your credit score. Read on to find out how a credit score can affect you and the steps you can take to be sure that your credit is in good standing when you head to apply for a mortgage. 


What Is A Credit Score?


Your credit score is checked by lenders of all kinds. Every time you apply for a loan or a credit card, there’s a good chance that your credit score is being pulled to see if you qualify for the loan. Your credit score is calculated based on the information on your credit report. This information includes:


Payment history

Debt-to-credit ratio

Length of credit history

New credit accounts opened


The areas with the most impact on your score is your payment history and your debt-to-credit ratio. This means that on-time payments are super important. You also don’t want to get anywhere close to maxing out your credit cards or loan amounts to keep your score up. 


What’s A Good Score?


If you’re aiming for the perfect credit score, it’s 850. Most consumers won’t reach that state of perfection. That’s, OK because you don’t have to be perfect to buy a house. If your score is 740 and above, know that you’re in great shape to get a mortgage. Even if your score is below 740 but around 700 or above, you’ll be able to get a good interest rate on your mortgage. Most lenders typically look for a score of 620 and above. Keep in mind that the higher your credit score the better your interest rate will be.    



What If You Lack Credit History?


Most people should get a credit card around age 20 in order to begin building credit. You can still qualify for a mortgage without a credit history, but it will be considerably harder. Lenders may look at things like your rent payments or car payments. Lenders want to know that you’re a responsible person to lend to. 


What If Your Score Needs Help?


It doesn’t mean you’re a hopeless case if you lack good credit. Everything from errors on your credit report to missed payments can be fixed. The most important thing that you can do if you’re buying a home in the near future is to be mindful of your credit. Keep an eye on your credit report and continue to make timely payments. With a bit of focus, you’ll be well on your way to securing a mortgage for the home of your dreams.        



About the Author

Author
Bonnee Proo
A Penn State undergrad with an MBA from University of Redlands, I specialize in the sale of new and existing homes in San Diego County. Licensed for 12 years in the Real Estate and Mortgage Banking industries, I have a strong background in Mortgage Banking and Investment property. Prior to real estate. I spent 18 years as a Corporate Accountant specializing in Healthcare and Biotechnology. I’ve always been a "numbers person.” However, my joy comes from working with and helping people make well-versed decisions with sometimes the largest investment they will ever make in their life…their home.


Leveraging my experience over the years, I am known for outstanding client service, available 7 days per week or whenever called upon to assist, execute, negotiate, guide or encourage. I strongly believe it is my duty to not only represent my clients to the best of my ability, but also to educate them throughout every step of the home buying (or selling) process, arming them with topnotch information and market insight so that they are able to make the best decisions possible. I am honest and trustworthy. I wholeheartedly believe that commitments are made to be kept. Also, I am extremely hardworking and knowledgeable about the real estate/mortgage industries and I have an EXCELLENT team of affiliates (lender, escrow, title, inspectors, etc.) with whom I work that are just as hardworking and knowledgeable in their respective lines of work, and always ready to assist.


During my spare time, you will either find me swing dancing or swinging a golf club. I also enjoy walking/hiking or spending time at the gym always working on trying to stay healthy; socializing with friends; and spending quality family time with husband, Phillip and my sassy, little fur-baby, Sadi.


 


AFFILIATIONS


National Association of Realtors (NAR)


California Association of Realtors (CAR)


Pacific Southwest Association of Realtors (PSAR)


Senior Real Estate Specialist (SRES)


San Diego Regional Chamber of Commerce (Ambassador)


East County Chamber of Commerce (Ambassador)


University of Redlands (Alumni Board)


Meals on Wheels (Volunteer)