Any citizen of the United States knows that buying a house is a very important moment in life. From this decision the days of life will be different. All aspects of buying a house are of importance, such as the neighborhood, the city, whether it is a house or an apartment and many more. That is why we have to get a very good credit score, so that the bank does not make it difficult for us to get a mortgage.
It is very possible that you are thinking about buying a house in the future. If you want to stop paying rent and have a place of your own, it is vitally important to have a good credit score. This means that you will be able to get better mortgage terms. The higher the credit score, the better conditions you can get on your mortgage. And this is not difficult to achieve, but you have to have everything well planned to avoid problems.
How to get a very high Credit Score
We must take into account that getting the maximum credit score is practically impossible. But it is not necessary to have 850 points to get a good mortgage. Very few people get that high credit score, so there is nothing to worry about. If you want to get your mortgage, it is good to follow these tips:
- Do not apply for any credit for 6 months before the mortgage: this point is of vital importance. If you have any credit that started during the 6 months prior to applying for the mortgage, it can lower your credit score by many points. Try not to apply for anything from the banks during that period before the mortgage.
- Pay all your bills: the bank will also be able to look at all your unpaid bills. If you do not pay any bills, your credit score will drop significantly, so have all bills paid to avoid problems with your mortgage.
- Eliminate any credit that has already been started: if you have any credit already started, it is a good idea to eliminate it before you start the mortgage. The bank will check all this data, so if they don’t find any credit in your name, you will have a head start.
How does scoring work?
According to FICO, the credit score works as follows:
- Exceptional: 800 and above
- Very good: 740-799
- Good: 670-739
- Fair: 580-669
- Poor: 300 – 579
As a general rule, if you are in the “good” category you should have no problems, but it may mean an increase in your monthly payment. To get the best possible mortgage, you should be in “exceptional”, although the factors are very difficult to achieve. Follow the advice we have given you and you may be able to get a better deal at the bank.