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how do credit scores impact homebuying?
Your credit score affects your home buying process in several ways, ultimately acting as one of the factors in determining whether or not you qualify for a mortgage loan, and if so, what interest rate and terms are offered for your loan. Many soon-to-be homebuyers have misconceptions about how their credit score affects home purchasing.

"One of the most common misconceptions is that poor credit will keep you from ever qualifying  for a home mortgage loan," said Dan McMahon, CHFA Home Finance Director, and former housing counselor. "Your credit score is only an indicator of where you presently stand in terms of creditworthiness, but it is not set in stone. Homeownership is possible if you work to improve your score to a level acceptable to a lender. This can take some time and discipline, but it is possible. Prudent management of your credit can increase your score, and prepare you for the long term financial commitment of homeownership."

To help maintain good credit, CHFA recommends these tips:
  • Pay your bills on time
  • Don't take on more debt than you can afford
  • Keep a positive credit history, and a diverse mix of credit types
For more information about credit scores and how they impact the home buying process, check out the following additional resources:
How does my credit score affect my ability to get a mortgage loan? 
(Consumer Financial Protection Bureau)

What can you do to improve your score? (U.S. Federal Trade Commission)
#grantyourself a $500 gift card from chfa
What freedoms would you grant yourself as a homeowner? Would you finally get a family pet, host a holiday party, or plant a garden? The possibilities are endless, and CHFA wants to see what potential homeowners like you would do if you had a home to truly call your own. Take a selfie and enter our Facebook contest by August 31st for a chance to win a $500 gift card to Walmart, Target, Home Depot, IKEA, or Lowe's (winner's choice).

The contest celebrates our new CHFA Down Payment Assistance Grant, a program to help you get an affordable home mortgage loan. 
 
  colorado housing and finance authority

 
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