Buying a Home
Credit Scores Matter
Home sales are down. Mortgage rates are down. But mortgage loans are still tough to qualify for, especially compared to five years ago. In 2005, only 25% of new loans had a credit score of 780. Today, almost 60% of new mortgage loans have a credit score of 780. The bar has risen considerably.
What can you do? Put together as high a down payment as possible. A 20% down payment may not only help you qualify for loan but also for a lower interest rate. Also, work hard to improve your credit score. Catch up on late payments, pay on time, and try to pay down balances so your available credit to credit used ratio is as high as possible.