Demystifying Credit
Your credit score is the key to unlocking the best mortgage rates. Learn how it works and actionable steps to improve it before you buy.
What makes up your FICO Score?
When mortgage lenders pull your credit, they are looking at a specific algorithm. Knowing what impacts this score helps you control it.
Score Ranges
Even with lower scores, our creative loan programs can often still find a path to homeownership for you.
How to Improve Your Credit Fast
Follow these steps if you plan on buying a home in the next 3 to 6 months.
1. Pay Down Balances
Aim to keep your credit card balances below 30% of their total limit. Paying them down to 10% is even better and can trigger a rapid score jump.
2. Don’t Close Old Accounts
Closing an old credit card shortens your credit history length and increases your utilization ratio. Leave them open, even if you don’t use them.
3. Freeze Major Purchases
Do not open a new furniture store card or finance a new car while getting ready to buy a house. Avoid any new “hard inquiries” on your report.
Need a free Credit Improvement Plan?
As a free concierge service, our advisors will review your report and tell you exactly which cards to pay down to maximize your score.
Talk to an Advisor