You have made the decision to purchase a home, now it is time to get pre-qualified before you shop.  Aside from the obvious affordability concern, the biggest factor to getting approved for a mortgage loan is your credit score.  These days, it is almost impossible to get a loan with anything less than a 620 FICO score. 

But how do you get and keep a good score.  Again, the obvious answer is to pay your bills on time.  But it is not enough to simply pay your bills on time.  In order to truly optimize your score you must keep your revolving debt balances to thirty percent (30%) or less of your high credit limit. 

I recently witnessed a credit score jump from below 620 to a 660, in less than one month.  The only thing that changed about this person’s credit was paying down balances to thirty percent or less on three revolving debts.  Simple! 

Good scores are more important now than ever before to get a mortgage.  Even a 620 score is barely good enough these days.  Many lenders are starting to “ding” folks for scores less than 660.  You only hurt yourself by paying a higher interest rate if your score is not at least 660 or above.  Don’t wait!  Start paying down your balances, pay them on time, and watch your score keep going up!

Denver home sales are still doing great and the competition for lower priced homes is unbelievable.  I am still finding some nicely priced homes in the Denver Metro / Aurora areas, but everyone out there looking is submitting top dollar bids.  So don’t wait!