I previously wrote about some of the contributing factors to your FICO score and how to can get your free annual credit report to keep an eye on the numbers. Enough can’t be said about knowing your score and being familiar with ways to keep it high so you’re in the best position when it comes time to be pre-approved for a mortgage.
In is The U.S. housing market recovery is underway. New home sales are at a multi-year high, housing starts are at pre-recession levels, and home builders plan for a strong 2013.
Since late-2011, falling mortgage rates have boosted buyer purchasing power. Now, today, in Central Indiana and many U.S. markets, the number of active home buyers outnumbers the number of active home sellers. It’s among the reasons why property inventory is falling and home prices are rising.
Roughly 20 percent of today’s home buyers purchase homes with cash. For everyone else, the ability to gain mortgage approval depends on income, assets, and, most importantly, credit scores. Your credit score is used a predictor of your future payment performance based on previous payment history. And lenders pay close attention.
If you plan to buy a home in Indianapolis or anywhere else in the next 12 months, spend some time with this The Today Show interview. It’s five minutes of practical credit scoring advice, including separation of credit score myth from credit score fact.
Direct link: Today Show
Among the credit scoring tips shared :
- How to get your credit checked without harming your credit score
- The value of using automatic payments with credit cards
- How to use “old” credit cards to boost your credit score
You’ll also learn about utility companies and why you should never be late with payment.
As compared to August 2011, last month’s average, mortgage-financing home buyer’s FICO score improved 9 points to 750. The average “denied” mortgage applicant’s FICO score was 704. Clearly, standards are high. However, credit scoring is a system and, with time, you can improve your rating.
From this interview and my previous posts on credit scores, you can find ways to make and keep your credit score better. With better credit comes better mortgage rates and a lower over all payment for your new home.