What 5 Things Impact Your Credit Score?
Do you know what goes into your credit score? And how it can impact you buying a home? Pull up a chair; Let's dive in!
Hi, I'm Sarah Woodward with My KC Home Team powered by United Real Estate Kansas City and today we discuss the five (5) crucial things that impact your credit score.
You may have heard that you need to have a high credit score when you're wanting to buy a home. You also may have heard that you need to pay your bills on time, but what actually goes into the credit scores?
Here's the breakdown:
1.) Payment History makes up 35% of your score;
2.) Amounts Owed & your credit utilization makes up 30% of your score;
3.) Length of Credit History makes up 15% of your credit score;
4.) New Credit lines makes up 10% of your credit score;
5.) Your Credit Mix makes up 10% of your total score.
Knowing what goes into your credit score means that you can be intentional on keeping your score high, and work to grow your credit score. And the higher the score? The more mortgage opportunities that you'll have,
the lower your interest rate, and the more house you can afford! A high credit score means that you'll have a lower monthly payment than if you have a fair or poor credit score.
Do you need resources to check your credit score?
You can check it on CreditKarma (dot) com, Fico (dot) com, and AnnualCreditReport (dot) com.
Now, my advice? Know where your credit score stands as of today. If you find that your credit score needs some work; it's no problem! I can put you in touch with some top notch lenders who will let you know what you need to do to improve your score and reach your goal of homeownership.
With over $65 million in transactions and hundreds of clients served, the Sarah Woodward & the My KC Home team is your Kansas City Real Estate Expert Advisor who guides you through the real estate process while assessing your dreams & turning them into accomplished goals! Sarah Woodward & team believe that home ownership & its opportunities are the American Dream and utilizing all the tools available is how we serve our clients to the fullest! This is done with superior marketing and her expertise as well as negotiating skills so that your home selling or purchasing process is as smooth as possible while accomplishing your goals, but that's not all. Kansas City is a special place that Sarah is proud to call home. That’s what it takes to truly be a local real estate expert. Not just expertise in negotiation and marketing, but a love and understanding of our community and the people who live here. That’s just one reason to choose Sarah to stand by your side – and it’s the foundation of everything she does.
Sarah was amazing, along with the rest of the My KC Home team. Their advice and expertise was spot on through the whole process: from the original market research, to the little follow-ups after closing. They have always just been a text away, and quick to respond. Even with their great advising, we still felt 100% in control and respected in our decisions. Sarah gave us the tools and confidence to sell our house quickly, and meet our financial goals at the same time. She worked to help us make a conditional purchase based on our sale. What could have been an extremely difficult and stressful situation actually felt very smooth with her behind us.- Hannah K (Zillow Review)
Sarah Woodward is a one of a kind realtor. She was very insightful in helping us list and sell our home. She did her own research to make sure we were getting the most we could while still being able to sell quickly. Sarah was super professional and a true blessing to come across. We will definitely be using her again in the future.- Rebecca A (Zillow Review)
Sarah did a great job all the way through our selling experience. She came out and explained the process of selling our home and getting it ready for sale. Sarah took a great interest in us and our home and marketed it in a great way. She orchestrated everything from the advertising to the closing. Sarah did a great job for us and I know she would do a great job for you.- Joe G (Zillow Review)
Use this calculator to determine how much house you can afford. By entering details about your income, down payment, and monthly debts, you can estimate the mortgage amount that works with your budget.
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