Question. How does your credit score effect your choice to buy a Jacksonville FL property? Read on! Here is a handy list.
First and foremost it is important to note that credit scores range from 200-800. The higher the better. When we bought our house I had a zero score (years of cash only) and had to quickly establish a line or credit. Lenders like to see a score of 620 and higher--but don't give up if you are lower, just shop lenders, and do not pull your credit too often. Onward!
- Variety. The goal is to have credit lines that are not identical. Example: a credit card, a car payment, furniture loan, etc. That is the overall goal, but please keep in mind that it is important to not open anything new until you consult your lender.
- Time. The longer the better in this case. You want a nice lengthy time line of great or good payment history. Generally speaking between 2-14 years is average, with the variables on both sides. Consistency and time. Good stuff.
- New Credit. Speaking of time. Nothing new--follow the basics of the home buyer commandments: do not open, do not close, do not switch, do not buy large items. I am sure we all get the picture! Nice, stable, easy to read.
- How Much. A friend of mine recently had her credit card limit reduced to the amount she owes. Not an issue, right? Wrong. That card now reflects a 100% debt ratio. Better to keep the higher limit, and the same balance (which she will keep paying on time:)) and show that there is 'room' on that card, and that it has a better debt ratio. At least that's what her lender told her. BTW--she called the company and they raised it again based on the original qualifying agreement.
- Payment History. The big one. Pay on time, or make arrangements if you cannot. Bottom line. Your payment history matters. Enough .said.
Regardless of the tax incentive, the number of homes on market, the great pricing--if your credit score is off and you are wanting lending then start to clean up the credit score. A good lender can assist with the clean up. And after it is cleaned up, let's start to search for homes in Jacksonville FL.
On a side note. I've changed my personal website recently and would really like some feedback! Click here and it will take you to the home page---and thank you!