What is a Good Credit Score for Getting a Mortgage?
So, you've found the perfect piece of real estate to make all your dreams come true. While this should be a time for celebration, just one simple number can change your entire future. Just what is a good credit score for a getting a mortgage? The answer may surprise you. In the past, a 720 credit score would open doors all over town. Now, the best rates only unlock for credit scores of 740 or higher! Read on for our advice to potential homeowners, and you'll have that key in your hand in no time at all!
Checking Your Score
Do you really know your credit score? It's a good idea to check every year to stay on top of your finances, and you can even check it online for free. Unexpected expenses can have a major impact on your score, even if you have a history of good credit. What about that broken water heater that maxed out your card? What about that delayed credit card payment? Take an honest inventory of your situation to make the best decisions possible.
Co-Signing Dangers
Teaming up for a big investment can be a great idea for a driven duo, but be sure that you know your partner well. You could have a sky-high income level with decades of terrific credit, but if you co-sign with the wrong person, your credit score can take a hit. Parents should be particularly mindful of this while co-signing auto loans or other major investments with children, who are less financially established. Sometimes the risk is well worth the investment, but be very careful when dealing with imbalanced partnerships. Instead, you may suggest a cash advance or other personal loan service from CashMax.
Getting Proactive
So, maybe you haven't quite cracked that golden credit score just yet. No need to panic! You can make simple changes that lead to big increases in your score in just a month. First, gather information. Talk with a loan officer about credit analysis, so you can determine why your score isn't up to par. If you find any inaccuracies, get proof and report it! There's no reason to take the blame for someone else's mistake. Finally, work on decreasing your debt. Pay off your credit card balances or consider increasing your credit limits, which will increase your available credit possible.
