Know Your Credit Score

Dated: 11/01/2017

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Thinking About Buying? Know Your Credit Score

Thinking About Buying? Know Your Credit Score | MyKCM

Knowing your credit score or getting a recent copy of your credit report is one of the first steps that you can take toward knowing how ready you are to start the home buying process.

Make sure all the information listed on your report is accurate and work to correct any mistakes. The higher your credit score, the more likely you will be to receive a better interest rate for your mortgage, which will translate into more ‘home for your money.'

Many potential buyers believe that they need a 750 FICO® Score or higher to be able to purchase a home. The truth is that according to Ellie Mae’s Origination Report, over 53% of loans were approved with a FICO® score under 750 last month!

Here are some tips for improving your credit score:

  • Make payments, including rent, credit cards, and car loans, on time.

  • Keep your spending to no more than 30% of your limit on credit cards.

  • Pay down high-balance credit cards to lower balances, and consider balance transfers to free up credit.

  • Check for errors on your credit report and work toward fixing them.

  • Shop for mortgage rates within a 30-day period — too many spread-out inquiries can lower your score.

  • Work with a credit counselor or a lender to improve your score.

Once you know your score, your next step will be finding a lender and getting pre-approved for a mortgage. Doing this will ensure that you know your budget before you start looking for your dream home.

Important take-away: don't worry that you can't buy a home if you don't have perfect credit.  If you do need to work on your credit, please call Beth Gaffer at (864)214-6247 so that she can refer you to one of her lender partners who can help. If you are ready to buy a home, talking to a lender is the first step. You need to have that pre-approval letter in hand to write that offer on your dream home. 

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Beth M Gaffer

I have been practicing real estate in the Upstate of SC for 4 years, and have been a realtor for almost 18 years. I love this area and especially enjoy helping people relocate to beautiful Greenville....

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