Credit Scores Are Changing, and That’s Good News for Buyers

If you’ve been holding off on buying a home because you think your credit isn’t good enough, it might be time to take another look. The way lenders look at credit is changing, and that could be good news for a lot of buyers.

You Might Need a Lower Score Than You Think

Most people guess too high when asked what credit score it takes to buy a home. A few years ago, the average guess was 652. In reality, the long-standing benchmark for many common loans has been 620, and some programs are even more flexible than that.

Guessing wrong can keep people renting longer than they need to, simply because they never check.

What’s Changing

For years, lenders relied mostly on one type of credit score. Now, newer scoring options have been approved that look at your financial history in a more complete way. That could help millions of people who have had trouble getting a score at all, like younger buyers or those who don’t use credit cards much.

Keep in mind that the score you see on a credit app may not be the same one a lender uses, so don’t count yourself out based on a quick online check.

The Basics Still Matter

Paying bills on time, keeping credit card balances low, and avoiding opening new lines of credit are still the best ways to strengthen your credit, no matter how it’s measured.

Find Out Where You Really Stand

A quick conversation with a trusted lender can tell you exactly what you qualify for. If you’re curious whether homeownership is within reach, The Whitney Perkins Team can connect you with a local lender and help you plan your next steps. Reach out to us today.

To learn more about the changes coming to credit scores take a look at this article from Keeping Current Matters.  

The Whitney Perkins Team at Keller Williams in Gainesville, Florida is ranked in the top 5% of REALTORs® in Alachua County, helping 126 families buy or sell homes last year with more than $34.4 million in sales. We treat our clients like family and focus on doing what is right.

Are you looking for a professional who truly listens to your vision for a home, or do you need an expert strategist who knows how to effectively market your property for a top-dollar sale? From Gainesville to the surrounding areas, we provide the responsive, attentive service you deserve, backed by real-world results. Give us a call. We are eager to help you start your next chapter.