When buying a home in NYC for the first time, you need to know a few important things. One of the most important questions to answer is, “What credit score do you need as a first-time home buyer in NYC?
What is A Credit Score?
A credit score is a number assigned to an individual by a credit bureau based on how they handle credit and payment. People who are careful with their money and financial obligations like bills and loans and promptly pay them back have a high credit score. People who don’t have a low credit score. It’s sometimes called a FICO score, but it depends on the credit union. The score typically ranges between 300 and 850.
Credit Score Requirements in NYC
It’s important to understand that credit score and credit requirements are two different things. Many sellers may only look at your score and determine if it’s at an appropriate level. But if you buy a co-op apartment, the board members might go through your credit report with a fine-toothed comb.
What credit score you need as a first-time home buyer in NYC depends upon the kind of mortgage you are going for. Some Federal Housing Administration (FHA) loans may be available to you at a credit score as low as 500. However, for most other loans, you may need at least a 620 score.
A credit score does more than impact your ability to buy a home in NYC. If you have a good score, you may get a good rate. But if you have a weak credit score, even if you manage to secure a mortgage, the rate wouldn’t be as good. As your New York City broker will probably tell you, it’s a good idea to know about your credit score before you start house-hunting. You can request a free copy from the three main credit bureaus once a year.
Also Read: What Is A Mortgage Recording Tax?
