Most of us don’t think about our credit rating. I used to think “So what if I’m a couple of days late paying my credit card? I’m paying it! I always pay my bills.” No more! I found out many years ago what a difference keeping my credit score high can make. Especially when buying a house.

Why Your Credit Rating Matters When Buying a Home

First, let’s look at credit scores.  There is a relatively small range … from a low of 300 to a high of 850.  Anything over 780 is considered exceptional.  And who cares?

Well, if you don’t have a pile of cash to buy your home with, when you apply for a mortgage the lender will care.  And, will adjust your interest rate accordingly.

Also, the best mortgage programs are usually available to those with the best credit scores.  Typically, good is a credit score of 700 plus.  If your credit score is below that, it doesn’t mean you can’t buy a house.  It just means your lender will have to find a program that will accept lower credit scores.  Alternatively, you can improve your credit score.


But, let’s look at your credit report before we go further

In order to view your credit report and see what your scores are go to  This is a free service brought to you by the Big Three – Equifax, Experian, and TransUnion.

This will give you a chance to also make sure there are no mistakes.  Look for any late payments and unpaid bills.  If they are not accurate, you can take steps to correct them.

How do you improve your credit score?   Here are 5 tips:

  1. Keep your balances low on your credit cards
  2. Increase your credit limit (this will cut your credit utilization rate)
  3. Pay your bills on time
  4. Don’t open up new credit cards that you don’t need
  5. Don’t close out your credit cards but refer to items 1, 2, and 3 above

As you can see in the chart on the left, there is a cost for low credit scores and certainly a reward for having a higher credit score!  Don’t wait, take a proactive role and follow these easy steps to improving your credit scores.

This will help you whether you are buying or renting a home, buying a car, in some cases even getting a job!

Back to buying a home though.  Search for your dream home here and let us know how we can help you make your new dream home a reality!

Call 720-295-1604 or email us at  It will be our honor and pleasure to help you!

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