Home Buyer Credit Score Facts
With mortgage rates low and prices just about perfect for buying, Iʼve had a lot of discussions lately with ﬁrst-time home buyers about what it takes to get a loan these days at a good rate. Naturally, a good credit score is important. (Typically, weʼre seeing the best rates for buyers with scores above 740.) You may not be ready to buy soon, but if youʼre thinking about it in the next couple of years, now is a great time to work on your credit score. If youʼre not familiar with how credit scores work, hereʼs what typically goes into them:
• Your past payment history = 35%. The more paid on time, the better.
• Amount you owe = 30%. The less you owe relative to your total available
credit, the better.
• How long youʼve had credit = 15%. Longer is better.
• How much new credit = 10%. Lots of new credit lowers your score.
• Kind of credit = 10%. Itʼs better to have different sources of credit.
Of course, credit score is only one part of the picture. Having a down payment of
20% or more can also inﬂuence your shot at the best rate.
If you ever have any questions about the path to home ownership or the ins and
outs of ﬁnancing, please feel free to get in touch.
This post has been authored by Eric Slifkin, REALTOR® serving South Florida’s Treasure Coast. You can reach me at 888-288-1765, or visit my Web site. As your resource for information on new or resale homes throughout the Treasure Coast, please be sure to contact me about any home you may find on the Web, yard sign or ad and I will research the property, arrange showings and handle all the details.