Your credit score will be one of the primary metrics used to determine if you qualify and what your loan pricing will be. When you apply for a mortgage, the lender will pull a credit report to evaluate your eligibility. When it comes to loans, your credit is your reputation as a borrower. It allows lenders to determine how likely you are to repay your loans.
While your credit is an important factor when considering homeownership, a common misconception is that you need perfect credit to buy a home. If you feel that your credit is an obstacle in your ability to purchase a home, our Homebuyer Solutions Group (HBSG) can help.
How Credit Impacts Pricing
- Your credit score is made up of 5 types of activity:
- Payment History
- Debt Load
- Length of Credit History
- Credit Types
- Credit Inquiries
- Now that you understand the aspects that make up your credit, try these tips to improve or maintain a good credit score:
- Always pay your bills on time
- Don’t exceed 50% of the credit line
- Keep revolving accounts open
- Avoid applying for credit with finance companies
- Only apply for credit when necessary
Breaking Down Your Credit Score
It is true that a low credit score can hold you back from larger purchases like buying a home. However, you aren’t necessarily stuck with bad credit for the rest of your life. HBSG is equipped with a team of Mortgage Credit Specialists that are dedicated to helping you improve your credit in preparation for homeownership. The program is a complimentary service included with your Eagle experience. Ask your Loan Officer for additional information about HBSG.
Talk to Your Loan Officer
- Your Mortgage Credit Specialist will:
- Review your credit profile & provide guidance on how to improve your scores
- Create a personalized action plan tailored to your needs
- Stay with you throughout the process with regular communication & answers to your questions
- Provide a Certificate of Completion and transition you back to your Loan Officer to complete the homebuying process
Learn More About HBSG