You may have heard that there is a shortage of real estate available in America, but our real estate agents want to assure you that there are plenty of magnificent Atlanta homes for sale, no matter your price range. But did you know that your credit score can change the affordability of your dream house? Credit scores not only make a difference in the mortgage rate but also in the type of loan for which you can qualify, including the amount of down payment required. Conventional mortgages usually require a minimum score of 620, FHA requires 580, VA and USDA require 640, and jumbo loans 700-740. Unfortunately, how these credit scores are calculated is a mystery to most consumers. Here are few ways to boost your score.

• Don't apply for new credit
  Retailers are always pitching their store cards with promises of money-saving prices and cashback on purchases. Lenders look at your FICO score to determine creditworthiness. Opening new accounts over a short period of time can signal a greater credit risk to lenders. New credit accounts for about 10% of your score.
  
  
• Dispute errors on your credit report
  By federal mandate, credit bureaus must offer access to a consumer's credit report for free once each year. You can run them only at annualcreditreport.com. They don't show you your score, but rather the data that goes into it. It can be a shock to learn that there are things that don't belong there. You may find collection items that do not belong to you or debts that you have actually paid off. Each credit bureau is going to have the same information on it and will outline the method of protest. Clean up negative items immediately, but do not make settlements, which will affect your score for years.
  
  
• Pay off debt
  Having multiple active credit lines can make it appear that you are over-extended and at a high risk of default. Your score is based upon the percentage of your total available credit is in use. When you pay off those small amounts to store cards, leave the account open to keep that availability. Retailers will eventually close inactive cards, which can account for a sudden drop in your score. To keep the card open, use it periodically, but pay it off immediately. To maintain a good credit score, keep your total debt under 30% of your total available credit. To maintain a great score, keep it well below that. Reduce larger debts by paying more than the minimum.
  
  
• Pay your bills on time
  A lender's greatest concern is default and the best indicator is whether a borrower pays bills when they're due. Your credit report will show them exactly how many late payments you have made over an extended period of time. Don't fall for the notion that payment within the grace period is the same as paying on time. It's also risky to always count on paying within a grace period. A single slip-up means a late payment and damage to your credit report. Your payment history accounts for a whopping 35% of your total score.
  
  
• Manage your credit
  Three to four months after you run your free credit report with one agency, run it with the second to verify that the changes you made were reflected in the reporting. Follow up as necessary and make sure no new issues appear. Do the same a few months later with the third agency. 

When you feel your credit is in good shape and you are ready to purchase, contact us to take the next step.