Whether you are buying in Hampton Roads, or anywhere else in the country, a good credit score is your key to buying a home. 

So before you begin your home search to view real estate listings, you may want to start with finding out your credit score.  The important thing to know is that a good credit score makes it easier for home buyers to obtain the best loan products!

According to the Experian National Score Index, the United States has an overall credit score of 693 and Virginians have a credit score of 700.

What do these numbers mean?

Let´s first answer this question by defining the term credit score.

A credit score on a national and individual level is an indication of financial well-being.  Companies use credit scoring as a way to assess credit risk based on one´s credit history and current credit card accounts. Scores can range between 330-830 and the higher the score the better one´s credit worthiness.  A higher number means it is more likely that a you will pay your debts on time and as mentioned above, this also makes you eligible for better loans with good rates.

This is especially important when buying a home.  The better your score, the better your mortgage and the better interest rate you will get.

If you don´t know what your credit score is, you have a right to find out.

There are 3 major credit bureaus and they are Experian, TransUnion, and Equifax. Though each agency uses different scoring models, several factors are used to determine your score and may include the following:

• Your history of late payments
• Non-payments
• Current level of debt
• Types of credit accounts
• Length of credit history
• Number of credit inquiries
• History of applying for credit

You can order a copy of your credit report or try to obtain a copy for free.

To order a copy:

• Experian  800-685-1111 (They will let you have a free copy of your credit report if you have been denied credit in the last 60 days.)
• TransUnion  800-916-8800 
• Experian  888-397-3742

Alternately, to obtain a free copy:

• You can obtain your once yearly free report from annualcreditreport.com
• If you were denied credit, insurance or employment within the last 60 days.  Send proof of your denial to the credit agency and request your free report.
• If you were charged higher rates or fees based upon a credit report from a credit bureau, you have a right to that report from the credit bureau.
• If you were the victim of fraud.

Once you obtain a copy of your report, check it for discrepancies and contact the credit bureaus immediately to correct them. People with high scores have a low credit risk and have the best chance of obtaining high quality loans.  Those with average scores may be required by a lender to provide additional documentation to obtain a loan and those with low scores may not even qualify for a loan and if they do, the process is more complex and the loan product is more expensive.

If you are interested in purchasing Hampton Roads real estate and would like more information about credit scores, how to improve your score, or obtaining the best mortage for your needs, feel free to contact me for a private consultation. 

Together we will develop a plan to put you on the path of home ownership!