Finding out your credit score is pretty easy. But knowing what your credit score means – for getting a mortgage and buying a home – well, don’t jump to any conclusions.
How can you find out your credit score?
You don’t need to subscribe to an online service or pay anything to find out your credit score. There are a lot of ways for you to do it absolutely free.
- Ask your bank, especially if you have a credit card account or other type of loan with them.
- Visit www.creditscorecard.com for a free, no-obligation view of your credit score provided by Discover, even if you’re not a cardholder.
- Or visit a third-party website like bankrate.com, credit.com or creditkarma.com. All allow you a free look at your credit score.
Why is your credit score so important?
Your credit score reflects your credit history. It identifies you to lenders as having bad, fair, good or excellent credit. It’s an easy way for lenders to judge how likely you are to make your mortgage payments in a timely manner.
What type of credit score do you need to have?
A quick Google search might lead you to believe that it takes a 740 credit score to qualify for a mortgage loan and get into your first home. That’s not necessarily true. Even if you have a lower credit score, as long as you’re a first-time home buyer, you may qualify for a VA, FHA, NIFA or other mortgage loan program.
So if your credit score is low, don’t get discouraged. Talk to your lender. Ask how you can improve your credit score, which will help you in all aspects of your personal finances. Then ask whether or not you qualify for a special first-time home buyer program. You may be closer to your first home than you imagine.
First-Time Home Buyer’s Guide
If you’re thinking about buying your first home, a great place to start is with our First-Time Home Buyer’s Guide, which provides all sorts of advice, tools and tips for the home buying journey. It will give you a clear picture of what to expect all along the way. View or download the guide today for the information you need to make a sound financial decision.
Daunia is an Assistant Vice President of Mortgage Loans at the Hastings branch of Heartland Bank. She is a lifelong resident of Hastings with 16 years of banking experience. She enjoys serving the neighbors in her community.
