How does my credit score impact my purchasing ability?

If you’ve decided to buy a home this year, you may have some questions about how your credit score will impact your purchase ability. This is a common question for many potential homebuyers, so here, I will discuss some of the primary things that you’ll need to know once you start the homebuying process.

Credit scores and credit reports will affect a borrower’s ability to purchase a home in a few different ways. Credit reports are a footprint that allow banks to review a borrower’s credit history. The information found in these reports will give them the information they need to determine the level or risk they’re taking by loaning money to this person. The higher the credit rating, the lower the risk for the bank. The lower the credit score, the higher the risk for the bank. In addition, remember that your credit score will affect the interest rate of the loan you obtain.

Here are some helpful tips on how to bolster your credit score and secure a good loan on the home of your dreams.

  • Make on-time payments on all borrower accounts
    • Missed or late payments will negatively affect your credit score
  • Satisfy unpaid collections, judgements and tax liens (even if these are medical in nature, it’s ideal to pay them off or settle prior to purchasing a home)
  • Establish a credit history by opening a credit line. We are often taught that credit cards are bad. However, they’re essential for establishing a solid credit rating to borrow future funds. The key is to keep the balance below 30% of the allowed limit, always. It’s ideal to pay the balance off each month as well.
  • Minimize credit iniquities. Too many inquiries can cause credit scores to drop.
  • Don’t close existing revolving trade lines if they’re in good standing. When you close a credit card you lose the on-time payment history which influences your credit rating. (1)

The specific details as to what credit scores are needed to obtain a specific home loan:

– Conventional Mortgage: credit score of 620
– FHA Mortgage: credit score of 580
– Veteran Affairs (VA) Mortgage: While the VA does not have a minimum credit score requirement, Quicken Loans requires a 620 credit score on all VA loans. (2)

The bottom line: the better your credit score, the easier it will be to get a loan for your home. Contact me today for information on what it will take to embark on your journey in buying or selling a home.


  1. Information courtesy of: Aaron Hicks, Mortgage Consultant with Homestreet Bank
  2. Information courtesy of: Jevon Domench of Academy Mortgage Corporation
Posted on February 20, 2018 at 5:04 pm
Nancy Johns | Category: Home Buying Tips, Selling Your Home | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , ,

3 Things To Do Before Listing Your House


Have you thought about listing your home for sale but you’re not sure where to start when it comes to getting it ready to list? Sometimes, getting your home ready to sell isn’t as hard as you might think. Homeowners oftentimes have big to-do lists of items to complete before they put the house on the market, but in all actuality, they may not be that important at all. Here are some helpful tips that can get you started.

Tip #1: Talk to your real estate agent first.
Your real estate agent will look around your home with you and figure out what repairs you might need to do and which ones are not necessary. After walking through your home together, you’ll be able to prioritize which things need to be done right away and which ones can wait.

Tip #2: Make the repairs.
Depending on what repairs need to be done, you’ll either need to start working on them yourself or find a company or contractor to do them for you. Pay attention to the details and be sure that you get the repairs done right, otherwise you may have a hard time finding a buyer or you may end up having to pay for another repair down the road when it comes time to close on the sale of the home.  In addition, this is a good time to touch up paint, brighten up the trim inside, clean your windows, and dust in those hard to reach places.

Tip #3: De-clutter your home.
This one might take a little time, but de-cluttering will make all the difference when it comes to showing your home. In addition, clearing out unnecessary “stuff” by donating it, throwing it away, or just boxing it up for storage will make your home look and feel bigger. If you have items that you want to keep handy, find decorative storage boxes to store them inside. That way you will reduce the clutter a bit but your home will still look aesthetically pleasing.

Not sure where to begin? I’m glad to walk you through the process of getting your home ready to sell. Inventory in Vancouver is still low and homes are selling quickly. Now is a great time to list your home for a quick sale! Contact me today for details.

Tips Provided by Nancy Johns
Blog Written by Brooke Strickland (

Posted on February 9, 2016 at 5:31 pm
Nancy Johns | Category: Selling Your Home | Tagged , , , , , , , , , , , , , , ,