Better Credit Score Mean a Better Home Loan

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Credit score is not only a point of pride but is also a pivotal factor for each and every Arizona home-buyerImproving your middle credit score can reap major benefits when financing a new home.   Before we go through boosting your score (see below) let’s look at what a credit score impacts with regard to obtaining an Arizona home loan.

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Credit may impacts Your Home Loan Options

Credit scores impact several areas of a home loan.  The top 5 areas that credit scores affect are:

  1. Down Payment Requirements
  2. Mortgage Interest Rate
  3. Cost of Mortgage Insurance
  4. The Ability to Buy a 2nd home or Rental Property
  5. Overall Closing Costs

The better one’s credit score the better each of these 5 items look.  Over the course of  30 year mortgage (heck – over just a few years) a poor credit score can cost an Arizona home buyer thousands and thousands of dollars.  It pays to investigate your score and to work on improving it before buying.  Check out these simple ways to increase your credit score:

9 Ways to Improve Your Credit Score

Boosting your credit score may not be as tough as you think.  There are some simple/creative solutions that you can implement to raise your score and have access to better mortgage options.   Here are 9 simple suggestions that you can put into place today:

  1. Keep credit card balances low
  2. Keep credit card balances low and keep them low
  3. Pay your bills on time
  4. Adopt new credit
  5. Keep an overall balanced credit profile
  6. Open new trade-lines
  7. Move revolving balances (credit card balances) around to keep them low
  8. Keep up on student loan deferment dates/first payment dates
  9. Obtain letters of deletion for collection accounts

Learn more about improving your credit here.  While the HOUSE Team is NOT a credit improvement company, we are experts when it comes to evaluating credit and offering strategies that may help improve your score.

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If you are in the market for a new Arizona mortgage and want to leverage the best credit score possible visit our credit resource website. There you will find information on:

  1. Improving your credit score
  2. Establishing new credit
  3. Where credit scores come from

By Jeremy House

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