With the world being in such an unfamiliar state, we know that thinking about your day to day just as much as your long term future, can seem quite overwhelming. And although things may seem difficult, that doesn’t mean you can’t have a positive perspective when it comes to your future. Many people are spending more time in their homes, and that translates to making their homes more comfortable, and even thinking about buying a home.

This is the perfect time to seriously sit down and consider your options in the home buying space. Interest rates are lower than ever, and people are generally spending a lot less than they were on other expenses so why not put those funds to your future home?

Get Serious About Your Credit Score

The main factor that lenders consider when it comes to determining the amount and the rate at which you borrow funds is your credit score. Your credit score is determined by your credit worthiness, or how likely it is that you will be able to repay the amount of money loaned to you. Many people are not aware that your credit score varies from agency to agency for multiple reasons. There are three major credit bureaus: Equifax, Experian and TransUnion and all report a little differently from one another.

Credit scores can change over time so it’s very important you know what impacts your credit score when you are seeking out a mortgage. Your credit score is typically based on the following:

• Timeliness of payments/payment history
• Amount of total debt
• Overall credit history
• Debt to income ratio (used credit vs available credit)

Credit scores vary from 300 to 850 and the higher your credit score, the better chance you have at getting approved for a loan. Depending on the reason you are using your credit score, the lender may use different requirements to measure your creditworthiness based on the industry and type of loan.

Get Those Numbers Moving on Up

If you have been thinking about working on your credit for some time but putting it off, now is the perfect time. Spending less going out to eat or traveling, means you have more money to focus on credit card bills or other debts that have been piling up. Now is the perfect time to review your credit card balances and focus on paying down any of them that a high proportion of their balances used.

If you haven’t done a thorough review of your credit report, you might find that there are errors showing damaging your score. Because credit reports can vary, it is a good idea to review all three and dispute any errors with the agency that is reporting. With some of your free time, it can be a great idea to pull your credit reports, and review them thoroughly for errors and make sure to dispute those errors as well.

Raise Your Credit Score Today!

Whether you’re thinking about buying a home in the next few months or even a year or two in the future, there’s no time like the present to get your credit in shape. We can help you out along the loan process whenever it may be so don’t wait to give us a call at North Star Mortgage in Jacksonville, FL today!