12 Tips To Improve Your Credit Score In Order To Buy A Home!
One of the most important steps to buying a home is getting approved for a mortgage. One of the biggest factors as to whether a buyer gets approved for a mortgage are their credit scores.
A buyers credit score impacts whether or not a buyer can obtain a home loan or not, first and foremost. In addition to the impact a buyers credit score has on their ability of getting a mortgage, it also can greatly impact the mortgage interest rate a buyer is able to receive.
A buyer with an impeccable credit score can expect to have a better interest rate than a buyer whose credit score is average. In fact, the difference in a mortgage interest rate can vary sometimes as much as 1.5%, which will make a huge difference in the amount of interest paid over the life of the home loan.
Since the mortgage approval process is one of the most critical steps to buying a home, it’s vital that buyers position themselves in the best possible place before discussing mortgages with a lender. Buyers who have strong credit scores greatly improve the chances they’re able to get approved for a mortgage and get the best interest rate.
If you’re wondering how to improve your credit score in order to buy a home, below are 12 tips for doing so. Following these tips can take credit scores from average to amazing, which will go along way in the mortgage approval process!
How Do Credit Scores Work?