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Credit Scores: How to improve your credit score with just a few changes.

Credit scores, commonly referred to as a FICO score, largely determine whether you’ll qualify for a home loan and what interest rate you’ll be charged.

In general, FICO scores range from 300-850, and to qualify as a first time home buyer, you’ll need a minimum score of 620 (or 580 through certain first time home buyers programs, including CHAFA).

By raising your credit score 25, 50, or 100 points, you can improve the odds of getting a mortgage at a competitive rate. We have customized software that points out specific steps you can take to raise your score, sometimes in as little as 30-180 days.

If your credit is spotty, that doesn’t necessarily prevent you from buying your first home, and if you have no credit history, you still might be eligible for a home loan and the $8,000/$6500 tax credit for home buyers.

Credit scores are calculated according to:

  • your credit history,
  • your track record of making payments on time,
  • the types of credit you’ve used,
  • how much you owe, how long you’ve had credit,
  • and how much new credit you’ve tried to obtain recently.

To keep your FICO score as high as possible, there are some easy steps you can take:

  • Make your payments on time and don’t skip any payments
  • Keep low balances on your credit cards.
  • Avoid department store credit cards or other specialized credit cards.
  • Check your credit reports at least once a year to make sure the information on them is accurate.

If you have credit issues, even if you declared bankruptcy yesterday, we can make recommendations for a financial plan you can follow so that in a relatively short amount of time, you’ll be able to qualify for a home loan.

We’re happy to provide a free credit report so that you know exactly where you stand. Call Andy Jorgensen, (303) 753-9135, for more information.

We’d love to help you find a residence if you’re a home buyer looking for a house, loft, townhome, or condo in Denver, Littleton, Aurora, Centennial, Lakewood, Englewood, Broomfield, Westminster, Brighton, Arvada, Golden, or Wheat Ridge.