We are nearing the conclusion of 2018; a time of year where many compose a list of affirmations, manifestations, and resolutions for the year ahead. Perhaps becoming a homeowner is at the top of your list for 2019 or somewhere in the near future. DDS is here to dispel the myths often associated with being a first time home owner and get you on the path to reach your home buying goals.
Credit Score: If you’ve been doing some light research, talking to family, friends, and colleagues who own homes one of the primary things they may have mentioned is the importance of having an impeccable credit score to be in the ranks of owning your dream home. While your credit score and history does play a key factor in the home buying qualifications; you do not have to have a perfect score to qualify for home ownership. In fact, it is possible to be considered for a home loan with a credit score as low as 580, however many lenders prefer that the applicants have a score between 620-640 minimum.
In terms of credit history be sure to make your payments on time whether it be your student loans, car payment, or credit cards bills. Avoid running unnecessary hard inquiries on your credit and opening frivolous accounts to retail and department stores. Also, having a variation of accounts is a good look on your credit history. For example, if a lender can see that you are in good standing with your student loans, your credit card has more credit available than used on your credit line, and your car is 6 months away from being paid off these factors show the lenders a variation of things including your financial integrity.