If you have been thinking about buying a new home, you have probably been thinking about your credit score. In fact, if you are seeking financing from a financial institution such as a bank, your credit score will have a significant impact on the loan approval process. As such, if your credit score is lower than average, you need to start building it as soon as possible. The good news is there are a lot of ways you can do that. Here’s what you need to know. If you have been thinking about buying a new home, you have probably been thinking about your credit score. In fact, if you are seeking financing from a financial institution such as a bank, your credit score will have a significant impact on the loan approval process. As such, if your credit score is lower than average, you need to start building it as soon as possible. The good news is there are a lot of ways you can do that. Here’s what you need to know.
How Can I Build My Credit Score for a New Home Purchase?
Here are some surefire ways that you can start to build your credit score for a new home purchase. Remember that building up a credit score takes patience and persistence. You should monitor your credit score using a free site, such as creditkarma.com, on a regular basis to see how you are progressing.

• Pay back your debt. The best way to build your credit score is to pay back the debt that you owe. If you are making payments on your credit cards late, or are not paying your payment in full, this will hurt your credit score. If you have any debt, you should always pay off your debt in full when possible. Just making the minimum payment on your debt is not recommended.
• Request a copy of your credit score and check for errors. If your credit score is low and you have no idea why, there could be an error – it happens. Request a copy of your credit score from a reputable source, and review it to see if there are any errors. If you notice anything wrong, you can dispute the error. This could result in improved credit.
• Take out more credit. To preface this tip, know that if you already have multiple lines of credit open or have credit card debt (or other debt) that you cannot pay, you should not take out more credit. Instead, this tip only applies to those who don’t have enough credit to get them the credit score that they deserve. That’s right – a credit score is based on the number of accounts you have open and the type of credit you have, which means that if you only have one credit card and nothing more, this could be dragging down your score.
• Don’t use too much credit. Just because you have a lot of credit available to you does not mean that you should use it all. In fact, credit utilization should never exceed more than 30 percent of your credit limit, if you can help it. This means that if your credit limit is $10,000, you should not put more than about $3,000 on that line of credit in a month. Of course, remember to always pay off any credit that you accumulate in full.
• Avoid big changes. Big financial changes, like buying a car right before applying for a mortgage, can diminish your score. Banks do not like to see big financial changes right before buying a home, so save any large purchases until after your loan is approved and you have the keys to your new home.
• Credit Cards aren’t enough. Mortgage lenders like to see at least one large purchase in your past where you took out a loan and paid it back – whether it be a loan on a car, motorcycle or something else. If you have never taken out a loan on a large purchase before applying for a home loan, you don’t have much credit history for the lender to evaluate.

How Hayden Homes Can Help 
At Hayden Homes, we want you to get the brand new home that you have always dreamed of. If you find a home that you love, we can help you to secure financing by recommending you to one of our preferred lenders. Got questions? We are here to help the process be as straightforward and simple as possible, ensuring that stress on your end is minimized. Want to learn more? Contact us online!