Credit scores are the most important piece of the home buying process as it affects your interest rate, housing payment and ultimately how much home you can afford to purchase. In this episode, we discuss the relationship between credit scores and interest rates, as well as the different loan options available based on credit scores. The conversation also covers the importance of compensating factors and how to improve credit scores for home buying. It delves into the concept of credit utilization and the benefits of becoming an authorized user on someone else's account. The conversation also addresses the impact of paying off collections and the option to add non-traditional credit as we help you become The Educated HomeBuyer.
00:00 The Impact of Credit on Home Buying 02:14 Credit Scores and Interest Rates 03:05 Credit Scores and Loan Options 05:27 Compensating Factors and Credit Scores 06:43 Improving Credit Scores for Home Buying 10:38 Utilization and Credit Scores 12:15 Authorized Users and Credit Scores 13:35 Paying Off Collections and Credit Scores 16:09 Adding Non-Traditional Credit 19:37 Inaccurate Information and Collection Accounts 22:44 Building Credit with Rent and Cell Phone Payments 25:37 Rapid Rescore and Improving Credit Scores 02:30 Defining the Problem 08:45 Causes of the Problem 15:20 Impact on Society 22:10 Current Solutions 29:50 Challenges and Limitations 36:15 Future Possibilities 41:26 Conclusion
